| Conflicting news about the state of the US economy has been roiling politics and consumer sectors for weeks—which makes today's jobs report all the more important. As Bloomberg's Enda Curran writes, we can all breathe a sigh of relief: The news was good. But not all good. Plus: The fairy tale of supply-side economics, and discontent in India over rice policy. If this email was forwarded to you, click here to sign up. If you're confused about the state of the American economy, you're not alone. After months of being told that unemployment is increasing and jobs are becoming harder to find, data released on Friday morning eviscerated many of those concerns. Companies hired a much higher than expected 254,000 workers in September, and revisions to the previous two month's data showed they employed an extra 72,000 workers that hadn't originally been counted. The unemployment rate fell to 4.1% and hourly earnings rose 4% from a year earlier. Consider this: The number of job losers (or people being laid off) actually declined in the month. The data set for "Job losers and persons who completed temporary jobs" fell by 95,000. Leisure and hospitality operators added 78,000 jobs, and there were an extra 25,000 construction jobs. If it all felt like a "Holy jobs data, Batman!" moment, that's because it was. KPMG Chief Economist Diane Swonk described the data as "stunning." Neil Dutta, head of economics at Renaissance Macro Research, sent out a reaction note with the all-caps subject line: "WOW. GOOD NUMBER." JPMorgan Chief US Economist Michael Feroli called it a "dinger of a jobs report." What does it all mean? For the Federal Reserve, the robust numbers will allow policymakers to exhale and will take pressure off them to lower rates by another 50 basis points when they meet next month (if they choose to lower at all). Vice President Kamala Harris' campaign will likely seize on these numbers as evidence of adroit management and an economic soft landing. Still, there remain some hints of caution that not all parts of the economy are as strong as others. The manufacturing sector, for example, shed 7,000 jobs (a point that former President Donald Trump will likely seize on in swing states). Broader data shows that consumers have been spending more cautiously, and small businesses in particular continue to complain about the impact of high interest rates. One of those sensing a dichotomy in the economy is Russell Breuer, founder and chief executive officer of pet food maker Spot & Tango. Although his business continues to do well, he's hearing from up to three times as many job seekers for his vacant positions as he was a year ago. "We have seen an increase in job applications," Breuer says. "Where other industries are downsizing, we are seeing more demand for open roles that we have." That doesn't mean a recession is imminent—but it does back up recent data that shows at least some cooling in the labor market. Small businesses like Spot & Tango, which employs around 130, make up the backbone of US employment. Analysis from the McKinsey Global Institute shows that micro, small and medium-size businesses employ almost 6 in 10 workers and produce almost 40% of value added nationally. For now, the outlook remains positive. The US has reached a point where inflation is slowing, the economy is growing and interest rates are falling. That's as good an outcome as any policymaker could have hoped for. Frank Fiorille, vice president of risk and compliance at Paychex, a company that runs payroll and other services for small businesses, says that for all the different signals right now, the smaller employers he does business with are still seeing strong conditions. "Today has validated it is still pretty good," Fiorille said. Related: Here Are the Key Takeaways From the US Jobs Report for September | 
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