US Job Growth Stalls with Only 29,000 New Positions in September
The U.S. labor market showed signs of weakness in September, adding just 29,000 jobs and pushing unemployment up to 4.2%. Economists had anticipated a much stronger gain of around 90,000 jobs. The data also included revisions for previous months, with August’s job growth reduced from 162,000 to 133,000 and July revised from a gain of 21,000 to a loss of 10,000. These changes erased 60,000 jobs from earlier estimates.
Despite the slowdown in hiring, layoffs have not surged, suggesting employers are holding onto existing workers. First-time unemployment claims remain historically low. Labor force participation rose slightly to 61.8%, while hourly wages grew by only 0.1% in September, with annual wage growth slowing to 3%. Certain sectors, like healthcare, construction, and manufacturing, added jobs, while government, information, and professional services saw declines.
The report comes amid intense political debate ahead of the midterm elections, with President Donald Trump’s administration highlighting economic growth, while Democrats criticize rising living costs. The Federal Reserve, which raised interest rates to 3.75% to 4% in September, may reconsider another hike after this weaker-than-expected jobs report. Fed officials indicated they will weigh additional data before making a decision.
The next employment report, due in October, will provide voters and policymakers with another key economic snapshot just days before the elections.