WASHINGTON — U.S. employers added just 29,000 jobs in September as unemployment edged higher and downward revisions erased 60,000 jobs from earlier estimates, according to the Labor Department’s report released Friday.
The unemployment rate rose to 4.2% from 4.1% in August. Hiring fell well short of the 84,000 jobs economists surveyed by The Wall Street Journal had expected.
The Bureau of Labor Statistics revised July’s employment change from a gain of 21,000 jobs to a loss of 10,000. August’s increase was reduced to 133,000 from 162,000. Those combined reductions were more than twice September’s gain.
Average hourly earnings increased 5 cents, or 0.1%, to $37.81. Wages rose 3% over the past year, the slowest annual increase since May 2021, The Associated Press reported.
Health care added 17,000 jobs, below its average monthly gain of 33,000 over the preceding year. Construction added 11,000 positions and manufacturing added 9,000, while financial activities lost 7,000. Labor force participation stood at 61.8%.
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Curt Long, chief economist with America’s Credit Unions, said the report strengthened the case for holding interest rates steady.
“The September jobs report was a mediocre one, with the unemployment rate climbing, wage growth falling, and modest job gains swamped by downward revisions to prior months. The news was not all bad: labor force participation improved and job market re-entry reached its highest level since February. Recently, several FOMC participants have argued for a pause on rate hikes in November, and this jobs report supports that position. Borrowing costs remain high, however, and credit unions offer a significant benefit for households through better rates and lower fees.”
Financial markets reacted by pushing Treasury yields lower and stock futures higher as investors reduced expectations for another Federal Reserve rate increase, according to Reuters.
