U.S. September Job Growth Slumps to 29,000 Positions

The United States Bureau of Labor Statistics reported that employers added only 29,000 jobs in September, significantly missing economist expectations of 90,000. This slowdown follows downward revisions to August and July figures, with July now reflecting a loss of 10,000 jobs. The unemployment rate rose to 4.2% from 4.1% in August, a shift partly attributed to 485,000 people entering the workforce.

While healthcare, construction, and manufacturing saw gains, government positions dropped by 17,000. Average hourly earnings rose 3% to $37.81, though this failed to keep pace with 3.4% inflation. Simultaneously, initial unemployment claims fell to 197,000 for the week ending September 26, the lowest level since 1969, suggesting a stagnant market where companies are freezing hiring rather than conducting mass layoffs.

Economists point to record-high diesel prices driven by the US-Israeli war with Iran, tariffs on Canadian goods, and a recent Federal Reserve interest rate hike as primary pressures. Hiring intentions have dropped 23% compared to last year. This economic volatility comes amid a decade-low in consumer confidence and record-low employee confidence reported by Glassdoor, occurring just before the November 3 midterm elections. The weak data may prompt the Federal Reserve to hold interest rates steady at its next meeting to avoid further stifling growth.