Slow US Job Growth May Keep Fed from Hiking Rates

US employers added a disappointing 29,000 jobs in September, a slowdown from the revised 133,000 in August. The unemployment rate ticked up to 4.2% from 4.1% in August.

The Labor Department's report may draw attention from the Federal Reserve, which has one of its mandates as seeking maximum employment. With the job market showing signs of weakness, the Fed might be more inclined to keep interest rates unchanged next month rather than raising them.

Meanwhile, average hourly wages increased by just 3% last month from a year earlier, the smallest gain since May 2021. Economists said this data shows no sign that the labor market is driving inflation.