US Labor Market Shows Unexpected Weakness in September Job Report

The US labor market showed unexpected weakness in September, according to the Bureau of Labor Statistics. Nonfarm payrolls rose by just 29,000, a far cry from the 84,000 jobs economists were expecting. The unemployment rate increased to 4.2%, above the predicted 4.1%. This marks the first time since March that the jobless rate has been outside the narrow range of 4.1% to 4.3%. Among major worker groups, only Black individuals saw an increase in their unemployment rate.

The revisions for August and July showed 60,000 fewer jobs than previously reported, further underscoring the labor market's soft spot. The news had a swift reaction on markets, with fed-dated swaps no longer pricing one full rate hike this year.