US Labor Market Slows Down in September

The US labor market has shown a slowdown in job growth, according to the latest employment report from the Labor Department. In September, payrolls added 263,000 jobs, falling short of expectations and marking a moderation in job creation. The nonfarm payroll count for the previous two months was also revised downward, sparking concerns about the sustainability of labor market conditions.

The unemployment rate rose to 4.2% last month from 4.1% in August as more people entered the workforce. Economists pointed out that payrolls tend to underperform when the Labor Day holiday falls late in September, which was the case this year.

Despite the decline in job growth, there were no signs of a broad increase in layoffs, and first-time applications for unemployment benefits have been hovering at 57-year lows. Robust corporate profit growth and resilient domestic demand have continued to support the labor market.

Economists noted that the report reaffirmed the 'low-hire, low-fire' state of the labor market, suggesting that job growth will continue to be sluggish in the near term. With inflation remaining above the 2% target, there is still a possibility of further monetary policy tightening in December.