US Payrolls Rose Only 29,000 in September, Jobless Rate Hits 4.2%
September nonfarm payrolls badly missed forecasts at 29,000 added jobs, while unemployment climbed to 4.2%, federal data shows.
The U.S. labor market showed significant strain in September, with nonfarm payrolls increasing by just 29,000 — less than half the 84,000 economists had projected — according to data released by the Bureau of Labor Statistics. The unemployment rate edged higher to 4.2%, signaling a broader softening in hiring conditions.
The miss relative to consensus forecasts was stark. Analysts had anticipated a modest but steady pace of job creation consistent with a cooling yet resilient economy. Instead, the September reading came in at roughly one-third of what many Wall Street models had expected, raising immediate questions about the durability of the post-pandemic labor expansion.
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A rising unemployment rate alongside weak payroll growth suggests the slowdown is not merely a statistical anomaly but may reflect employers pulling back on hiring more broadly. Economists typically watch both figures in tandem: payroll growth measures new job creation, while the unemployment rate captures how many workers are actively seeking employment without success.
The report is likely to intensify debate at the Federal Reserve, where policymakers have been weighing whether to adjust interest rates in response to shifting economic conditions. Weak job numbers could increase pressure on the Fed to consider rate cuts sooner, even as officials continue to monitor inflation data alongside labor market signals.
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