Disappointing US Jobs Report May Prompt Fed to Hold Off on Rate Hike

US employers added only 29,000 jobs in September, down from a revised 133,000 in August, according to the Labor Department. The unemployment rate ticked up to 4.2% from 4.1% in August.

Economists had expected payrolls to come in around 90,000, and revisions shaved 60,000 jobs off combined July and August payrolls.

The Federal Reserve may be more inclined to keep its key rate unchanged when it meets next month, rather than raise it, due to the weaker job market. Average hourly wages were up just 3% last month from a year earlier, the smallest year-over-year gain since May 2021.