U.S. job growth last month topped all estimates, the unemployment rate unexpectedly declined and wage growth accelerated, reducing the odds the Federal Reserve will opt for another big interest-rate cut in November.

Nonfarm payrolls increased 254,000 in September, the most in six months, following an upwardly revised 72,000 advance over the prior two months. The unemployment rate fell to 4.1% and hourly earnings increased 0.4%, according to Bureau of Labor Statistics’ figures released Friday.

Combined with data earlier this week showing that demand for workers is still healthy while layoffs remain low, the payrolls report is likely to alleviate concerns that the labor market is cooling too quickly.

Fed Chair Jerome Powell this week reaffirmed that shielding the labor market was part of the reason why the Fed decided to kick off its easing cycle with a larger rate cut in September. Powell and his colleagues believe no further cooling is needed to bring inflation down to the Fed’s 2% target, he said.

Stock futures, the dollar and Treasury yields rose after the figures. Pricing in the swaps market showed traders paring bets on a Fed interest-rate cut larger than a quarter-point in November.

The solid report could give a boost to Vice President Kamala Harris as she heads into the final weeks of the presidential election race that has focused on voters’ views on the economy.

Fed officials also pay close attention to wage growth, as it can help inform expectations for consumer spending — the main engine of the economy. Hourly earnings rose 4% from a year ago, the biggest advance in four months. Wage growth for production and nonsupervisory employees, cooled to 3.9%.

The gain in hiring last month was driven by leisure and hospitality, as well as health care and government. The payrolls diffusion index, which measures the breadth of changes in private employment, rose to the highest since the start of the year.

October Report

The October jobs report will include the impact of a walkout last month by some 33,000 Boeing Co. factory workers. Another large strike, by U.S. dockworkers, ended after three days and likely won’t have a direct effect on the month’s payrolls count.

However, another wrinkle is Hurricane Helene, which cut a path of death and destruction across a swath of the U.S. Southeast. Parts of the region are struggling to reopen roads and reconnect power, indicating business will take time recover.

The latest jobs report showed the so-called underemployment rate — which includes those working part-time for economic reasons and discouraged workers — fell to 7.7% in September, the first decline in nearly a year.

The participation rate — the share of the population that is working or looking for work — held at 62.7% for a third month. The rate for workers ages 25-54, also known as prime-age workers, dropped to 83.8%.

While layoffs haven’t been a main feature of the labor-market cooling in the U.S., they’re picking up in other countries. Samsung Electronics Co. is laying off workers in Southeast Asia and Oceania as part of a plan to reduce global headcount, and Volkswagen AG is both trimming positions in China and mulling plant closures at home in Germany.

With assistance from Cécile Daurat, Alex Tanzi, Mark Niquette and Carter Johnson.