US Jobs Report Misses Forecasts, Labor Market Losing Momentum
The US jobs report for September came in lower than expected, with employers adding only 29,000 jobs compared to forecasts of 90,000. This was not just a one-time miss: July and August payrolls were also revised down by a net 60,000.
Private payrolls rose by 46,000, which is below the expected 81,000. The sectors that did well were healthcare and social assistance, as well as leisure and hospitality.
The unemployment rate ticked up to 4.2% from 4.1%, despite a rise in the participation rate to 61.8%. Average hourly earnings rose by only 0.1% over the month, which is below forecasts of 0.3%. However, they are still up 3.0% year-over-year.
The labor market seems to be losing momentum, with slower hiring and cooler wages potentially reducing inflation pressure in the long run.