US Jobs Report Suggests Cooler Labor Market

The US jobs report for September showed slower than expected growth in nonfarm payrolls, which led to a rebound in stocks and bonds and reduced expectations of a Federal Reserve rate increase this month.

The Labor Department reported that nonfarm payrolls increased by 29,000 jobs last month after a downwardly revised 133,000 rise in August. This figure fell short of the estimated 90,000 payroll gain forecasted by economists polled by Reuters.

Economists noted that volatility linked to seasonal adjustment factors likely accounted for both the meager payroll gains and the downward revision to August's count. Labor Day falling late in the month can lead to underperformance in payrolls.

The unemployment rate increased to a still-low 4.2% last month from 4.1% in August, with economists attributing this rise to retirements and the Trump administration's immigration crackdown reducing labor supply.