US Jobs Growth Plummets to 29,000 in September

The Bureau of Labor Statistics reported that the United States added only 29,000 jobs in September, missing economist expectations of 84,000 and marking a steep decline from the 162,000 jobs added in August. The unemployment rate rose to 4.2%, up from 4.1% in August. Average hourly earnings grew by only 0.1%, continuing a six-month trend of wages trailing inflation.

Economic strain has been driven by a surge in inflation, which reached a three-year high of 3.4% in August, partly due to gasoline price increases linked to the Iran war. The Federal Reserve System recently implemented its first interest rate hike in three years to combat these pressures. Despite the weak hiring data, stock markets rose as investors believe the slowdown makes another rate hike in October less likely.

The report arrives as the final monthly data release before the midterm elections. It contrasts with claims from President Donald Trump that the economy is booming, while Democrats plan to use the indicators to challenge the Republican Party on affordability. While healthcare, construction, and manufacturing saw modest gains, other major industries remained stagnant.