WASHINGTON: The US economy added just 29,000 jobs in September as hiring slowed sharply and the unemployment rate rose to 4.2%, according to data released Friday by the Bureau of Labor Statistics.
The September employment gain followed a downwardly revised increase of 133,000 jobs in August. July employment was also revised lower, with the economy losing 10,000 jobs instead of previously reported growth of 21,000.
The revisions reduced combined employment gains for July and August by 60,000 jobs. Employment in all major industries changed little in September, while health care continued to add jobs, gaining 17,000.
The unemployment rate rose from 4.1% in August to 4.2% in September, with 7.1 million people unemployed. The rate has remained between 4.1% and 4.3% since March.
Average hourly earnings for private-sector workers rose by 5 cents, or 0.1%, to $37.81 in September. Wages increased 3% over the past 12 months, down from 3.1% in August.
The September figures came in below economists’ expectations for about 90,000 new jobs and an unemployment rate of 4.1%.
The weak report adds to concerns about a slowing labor market amid broader economic pressures, including higher energy costs, policy uncertainty and rapid adoption of artificial intelligence.
The latest data also showed a continued pattern of relatively limited hiring and firing. The BLS said nonfarm payroll employment had increased by an average of 45,000 jobs per month over the previous 12 months.
Financial markets reacted positively to the weaker employment figures, with investors adjusting expectations for the Federal Reserve’s interest-rate decisions.
