U.S. Added 29,000 Jobs in September; Rate at 4.2% — SkimNews
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- The Bureau of Labor Statistics reported just 29,000 nonfarm jobs were added in September, far below the 84,000 economists expected, while the unemployment rate rose to 4.2% from 4.1%.
- Prior months were revised down by 60,000 jobs combined, with August cut to 133,000 and July swinging from a gain to a loss of 10,000 positions.
- Traders pushed stock futures higher and Treasury yields lower on the report, with odds the Fed holds rates at its Oct. 27-28 meeting jumping to 82.8% on the CME FedWatch tool.
- The household survey told a stronger story than the payrolls data, with employment rising 406,000, the labor force growing by 485,000, and the participation rate climbing 0.2 points to 61.8% — its highest since May.
- Average hourly earnings rose just 0.1% for the month and 3% year-over-year, the slowest 12-month wage gain since May 2021 and below the 3.1% economists had forecast.
- Healthcare led job gains with 17,000 added, while government shed 17,000, temporary help services lost 11,000, and information services dropped 10,000 amid AI-related concerns.
Why it matters: Wage growth cooled to 3% annually and the unemployment rate climbed, giving the Federal Reserve cover to hold rates at its Oct. 27-28 meeting, where traders now price 82.8% odds of no change. The weak report shifts the policy debate to December even as GDP growth tracks a robust 3.7% for Q3, per the Atlanta Fed.
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