U.S. September Jobs Report Shows Significant Hiring Slowdown
The U.S. economy added only 29,000 jobs in September, far below expectations and increasing pressure on the Federal Reserve regarding interest rate decisions.
The United States job market slowed significantly in September, adding only 29,000 jobs, roughly one-third of the 84,000 expected by Wall Street. The unemployment rate rose to 4.2% from 4.1% in August. These figures follow concerns from market analysts that August's reported 162,000 job increase was a seasonal mirage; the Labor Department subsequently revised August gains downward by 29,000 to 133,000, contributing to a total downward revision of 60,000 jobs over two months.
Wage growth also lagged, with average hourly earnings rising 0.1% over one month and 3% over 12 months, trailing the 3.4% inflation rate. The data arrives ahead of the November 3 midterm elections, complicating the narrative for Donald Trump, who has claimed an economic renaissance while attributing inflation to his predecessor.
The cooling market has decreased the likelihood of the Federal Reserve raising interest rates at its October 28 meeting, though officials remain divided. Lorie Logan has advocated for tighter monetary policy to balance mandate goals, while Michelle Bowman has suggested there is no urgent need for further action until more data is available. Meanwhile, House Budget Committee Ranking Member Brendan Boyle criticized the administration, noting that rising mortgage rates are making homeownership unattainable.
