29,000 jobs added vs. 90,000 expected; unemployment rate rises to 4.2 %
The US added fewer jobs than expected in September and wage growth slowed, pointing to employers’ cautiousness to hire amid rising costs.
Nonfarm payrolls increased 29,000 last month after a downward revision to the prior two months, according to Bureau of Labor Statistics data out Friday. That missed all estimates in a Bloomberg survey of economists. The unemployment rate rose to 4.2 percent, partly reflecting a growing workforce.
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The slowdown in job growth was driven by payroll declines in government, information, professional and business services, and financial activities. Health care, construction and manufacturing added jobs. Leisure and hospitality employment also increased.
Robust consumer spending and vigorous business investment has supported hiring, but many cost-conscious employers are reluctant to expand headcount. Layoffs, however, remain subdued.
With unemployment still historically low, Federal Reserve officials can keep their attention focused on inflation as they consider when to raise interest rates again. Traders pared bets on a Fed rate hike in October following the data.
The latest jobs report is the last before the November midterm elections, where the economy is expected to play a central role in how Americans vote. While the labor market is part of that picture, much of the focus has been on lingering concerns about the cost of living, even as consumers continue to spend.
Average hourly earnings edged up 0.1 percent from August and rose 3% compared with a year earlier — the slowest annual wage growth since 2021.
S&P 500 futures rose following the release. Treasury yields and the dollar declined.
The participation rate — the share of the population that is working or actively looking for work — rose to a four-month high of 61.8 percent in September. A decline in participation this year has helped keep the unemployment rate low. (Bloomberg)
ch0221@heraldcorp.com
