US Jobs Report Shows Unexpected Weakness as Unemployment Rate Hits 4.2%

The US labor market showed signs of weakness in September, with nonfarm payrolls increasing by only 29,000, far below the expected 90,000. This is a sharp decline from the 162,000 jobs added in August.

The unemployment rate rose to 4.2%, up from 4.1% in the previous month and matching a three-month high. The jobless rates for various demographic groups remained relatively stable, except for Black workers, who saw an increase in their unemployment rate to 7.0%.

Economists had predicted a gain of 84,000 jobs and an unemployment rate of 4.1%, making the actual numbers a disappointment. The August jobs count was revised lower to reflect a gain of 133,000, while July's job growth was downgraded from a gain to a loss.