US September Jobs Data Shows Conflict Between Federal and Private Reports

The Bureau of Labor Statistics reported that the United States added only 29,000 jobs in September, a sharp decline from August. The federal report also included significant downward revisions for previous months, adjusting August growth to 133,000 and shifting July from a gain to a loss of 10,000 jobs. The unemployment rate rose to 4.2% from 4.1% in August.

Sector data showed health care led growth with 16,700 new positions, while government jobs fell by 17,000. Average hourly earnings rose 3% to $37.81, though this failed to keep pace with 3.4% inflation. Economist Kathryn Anne Edwards described the federal data as a textbook weak jobs report, stating that things got worse for workers during the month.

In contrast, the ADP National Employment Report indicated a stronger rebound with 90,000 private-sector jobs added, driven by education, health care, and leisure and hospitality. ADP Chief Economist Nela Richardson characterized the private-sector report as strong.

Kevin Hassett of the National Economic Council attributed the rise in unemployment to a surge of 485,000 people returning to the labor force. He argued that workers are returning to seek higher pay provided by a strong labor market.