US Job Market Slows Amid Election Season

The US economy added only 29,000 jobs in September, falling short of expectations and marking a slowdown from August's revised 133,000 hires. The unemployment rate ticked up to 4.2% from 4.1%, while economists had forecast around 90,000 new jobs.

Revised Labor Department data also reduced July and August payrolls by 60,000 jobs combined. Average hourly wages rose just 3% year-over-year, the smallest gain since May 2021, according to Luke Tilley at Wilmington Trust.

The Federal Reserve may be less inclined to raise interest rates next month due to the weaker job market. However, inflation remains above the central bank's target of 2%, and some Fed officials prioritize combating high prices.