Weaker Job Market in US Adds to Election Concerns

US employers added a disappointing 29,000 jobs in September, down from the revised 133,000 in August. The unemployment rate ticked up to 4.2% from 4.1% in August.

Economists had expected around 90,000 new payrolls for September. Labor Department revisions shaved 60,000 jobs off combined July and August payrolls.

The Federal Reserve may be more inclined to keep its key rate unchanged when it meets next month, rather than raising it, given the weaker job market. Average hourly wages were up just 3% last month from a year earlier, the smallest year-over-year gain since May 2021.

Professional and business services companies trimmed 9,000 jobs, while healthcare companies created 17,000. Construction companies added 11,000 jobs, and manufacturers 9,000.