U.S. Adds Just 29,000 Jobs As Unemployment Rate Rises
By CU Today Staff —
WASHINGTON — U.S. employers added just 29,000 jobs in September as the unemployment rate edged up to 4.2%, offering fresh evidence of a cooling labor market. The payroll gain was far below the roughly 90,000 jobs economists surveyed by Reuters had expected and was down sharply from a downwardly revised 133,000 jobs added in August.
The Labor Department also revised July and August payroll gains down by a combined 60,000 jobs. Average hourly earnings increased 3% from a year earlier, the slowest annual wage growth since May 2021. Healthcare added 17,000 jobs, construction added 11,000 and manufacturing gained 9,000, while government employment fell by 17,000 and professional and business services lost 9,000 jobs.
The softer-than-expected report could influence the Federal Reserve as it weighs its next move on interest rates. Reuters reported the data fueled gains in stocks and bonds and reduced market expectations for another Fed rate increase this month. Despite September's weakness, layoffs remain relatively low, contributing to what economists have characterized as a labor market with limited hiring but also limited job cutting.
“The September jobs report was a mediocre one, with the unemployment rate climbing, wage growth falling, and modest job gains swamped by downward revisions to prior months," America's Credit Unions Chief Economist Curt Long noted. "The news was not all bad: labor force participation improved and job market re-entry reached its highest level since February. Recently, several FOMC participants have argued for a pause on rate hikes in November, and this jobs report supports that position. Borrowing costs remain high, however, and credit unions offer a significant benefit for households through better rates and lower fees.”
Originally reported by CU Today.