US Job Growth Slows Sharply Amid Rising Unemployment Rate

The US job growth slowed down more than expected in September, with nonfarm payrolls increasing by only 29,000 jobs. This is a sharp moderation from the previous month's downwardly revised rise of 133,000 in August.

Economists had forecasted payrolls to advance by 90,000 after a previously reported surge of 162,000 in August. However, estimates ranged from as low as 35,000 to as high as 180,000.

The unemployment rate increased to 4.2% last month from 4.1% in August as more people entered the workforce.

Olu Sonola, head of US economics at Fitch Ratings, noted that payrolls have a tendency to underperform when the Labor Day holiday falls relatively late in September.