US employers add just 29,000 jobs as unemployment rises to 4.2%
US employers added 29,000 jobs in September, well below forecasts, and unemployment rose to 4.2%, according to the Labor Department. The figures have weakened expectations of an October rate rise, but analysts cited by CNA and the New York Post still expect inflation to keep a December increase in play.
Bottom line — The Fed’s next move still hinges on inflation, despite September’s 29,000-job gain.
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The Labor Department revised July and August payrolls down by a combined 60,000 jobs, CNA and the New York Post report.
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CNA says the unemployment increase partly reflected 485,000 more people entering the labour force; participation rose to 61.8%.
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Healthcare added 17,000 jobs, below its average monthly gain of 33,000 over the past year, according to both outlets.
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CNA reports that financial markets cut the odds of an October rate rise to roughly 13%, from 22% before the report.
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The New York Post reports that average hourly earnings rose 3% year on year, below its cited recent inflation estimate of 3.4%.
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The New York Post says 4.5 million people were working part-time for economic reasons and nearly 2 million were long-term unemployed.
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The New York Post reports that Challenger, Gray & Christmas attributed nearly 4,000 September job cuts to AI; more than 120,000 cuts this year cited AI.