US Labor Market Stumbles Amid Ongoing Inflation Worries

The US economy added only 29,000 jobs in September, according to data released by the Bureau of Labor Statistics (BLS). This is a significant decline from the previous two months, where employers added 31,000 and 21,000 jobs respectively. The BLS also revised the past two months downward, showing the market losing 10,000 jobs in July and adding 133,000 in August.

The unemployment rate has remained below 5 percent since August 2021, after spiking to a peak of 14.8 percent during the early stages of the COVID-19 pandemic. Inflation remains above the Federal Reserve's 2 percent target for five-plus years, with annual inflation at 3.4 percent in August.

Despite this, Fed Chair Kevin Warsh said that the unemployment rate is 'running consistent with full employment,' and that the central bank's dual mandate of maximum employment and price stability are not at odds in the medium term. Multiple FOMC officials have recently forecasted future rate hikes, while noting they will continue to monitor incoming economic data.