US job growth undershoots expectations in September, but labor market remains stable

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1. 2h ago

   US September Job Growth Slows to 29,000

   The US economy added 29,000 jobs in September, a figure that undershot expectations and signaled a slowing labor market. While the overall market remains stable, the unemployment rate rose to 4.2%. This soft jobs report has led traders to believe the Federal Reserve is unlikely to increase interest rates in October. The data comes one month before the midterms, prompting political criticism from top Democrats regarding the current economic agenda. Restaurant hiring also slowed in September following a surge in August.

   Why it matters

   Labor market data heavily influences Federal Reserve decisions on interest rates to manage inflation. This report is the final employment update released before the upcoming midterm elections. Nonfarm payroll counts for the previous two months were also revised sharply lower.

   What is confirmed

   • The US economy added 29,000 jobs in September.
   • September job growth was lower than expected.
   • The unemployment rate rose to 4.2%.
   • Market participants now see a lower probability of a Federal Reserve rate hike in October.

   Still unconfirmed

   • Top Democrats claim the current jobs data reflects Trump's failing economic agenda.
   • Restaurant job growth slowed in September after an August surge.

   What to watch next

   • Federal Reserve interest rate decision for October
   • Midterm election results
   • Future nonfarm payroll revisions
   Sources used for this update (21)

   1. The Washington Post — U.S. economy added 29,000 jobs in September, signaling a slower labor market
   2. Yahoo Finance — US posts weak job growth data in September
   3. The New York Times — Soft Jobs Report Boosts Market Bets Fed Will Skip October Rate Increase
   4. Nation’s Restaurant News — September restaurant job growth slows after August hiring surge
   5. CNBC — Traders now see little chance of a Fed rate hike in October after weak jobs report
   6. Reuters — US job growth undershoots expectations in September, but labor market remains stable
   7. theguardian.com — Top Democrats slam ‘Trump’s failing economic agenda’ after weaker-than-expected jobs growth – US politics live
   8. The Globe and Mail — U.S. job growth in September slows more than expected one month before midterms
   9. WRAL — US hiring slows and unemployment ticks higher with a month remaining before Americans head to polls
   10. Bloomberg.com — US Stocks Rise Despite Soft Jobs Report
   11. KCCI — Final jobs report released before midterms: What does it mean for your wallet?
   12. MarketWatch — Why bond investors quickly lost their enthusiasm for weak jobs figures
   confidence 95%