US Job Growth Slows Sharply in September

US job growth slowed more than expected in September, with nonfarm payrolls increasing by just 29,000 jobs last month. This is a sharp moderation from the previously reported surge of 162,000 jobs in August.

Economists had forecast payrolls would advance by 90,000 after the downward revision to the August estimate. The Labor Department's Bureau of Labor Statistics also revised July's data, showing the economy shed 10,000 jobs, a second negative payroll reading this year.

The unemployment rate rose to 4.2% in September from 4.1% in August, as more people entered the workforce. However, economists note that payrolls tend to underperform when the Labor Day holiday falls relatively late in September, as it did this year.

The report likely has little impact on near-term monetary policy, with inflation remaining the key focus for the Federal Reserve. Economists expect a rate hike in December, despite the disappointing jobs report.