Arya News - The US economy added 29,000 jobs in September, with unemployment rising to 4.2 percent, according to Labor Department data.
Job growth in the United States slowed in September, falling short of economists’ expectations as the unemployment rate rose in the final jobs report before the consequential midterm elections.
The US economy added 29,000 jobs in September, according to the Labor Department’s report released on Friday, far below economists’ expectations. Dow Jones had forecast 84,000 jobs, while economists polled by Reuters said they expected 90,000 job additions.
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list of 3 items list 1 of 3 US consumer confidence hits its lowest level since 2014 ahead of midterms list 2 of 3 Trump launches midterms campaign blitz amid record low approval ratings list 3 of 3 What would a US diesel export ban mean for global fuel prices? end of list The unemployment rate also rose by 0.1 percentage point, from 4.1 percent to 4.2 percent.
The healthcare sector led the gains, accounting for the majority of new jobs. The industry added 17,000 jobs, marking a slowdown from an average of 33,000 jobs per month over the past year. Construction added 11,000 jobs, while manufacturing added 9,000.
Financial activities, which include sectors such as commercial banking and insurance, shed 7,000 jobs.
Most other sectors were largely unchanged, including retail, oil and gas extraction, and leisure and hospitality.
“Today’s disappointing report shows the labour market is grinding to a halt, marked by slow hiring and declining real wages that leave workers with very little leverage,” Kyle Moore, chief economist at the think tank The Century Foundation, said in remarks provided to Al Jazeera.
Previous jobs reports were also revised downward. July was revised from an initial gain of 21,000 jobs to a loss of 10,000 jobs. August was revised down by 29,000 jobs, from 162,000 to 133,000.
Wages grew by 3 percent, marking the slowest annual wage increase in five years.
Friday’s jobs report caps a week of weakening economic data before the consequential midterm election on November 3.
According to an AP-NORC poll released on Thursday, 61 percent of Americans polled said the US economy is worse off now than when Trump took office in January 2025.
“When businesses are barely hiring and raises aren’t keeping up with rising prices, it’s a stalled economy – and working families are stuck in it,” Breyon Williams, chief economist for Groundwork Collaborative, an economic policy think tank, said in a statement.
Trump has been trying to change the narrative on the slumping economy. On Monday, he said in a Truth Social post that “The United States has the BEST Employment Numbers in HISTORY.”
Stalling growth
On Tuesday, the US Labor Department released the Job Openings and Labor Turnover Survey, or JOLTS report, which showed little change, suggesting what economists call a low-hire, low-fire environment. That means those who have jobs are generally not leaving for new ones, while employers are maintaining the status quo rather than expanding.
On the other hand, ADP’s private payroll report, released on Wednesday, showed that 90,000 jobs were created across the private sector. The sheer number of layoffs fell, too, according to Challenger, Gray & Christmas. The report, released Thursday, showed that employers cut more than 43,000 jobs in September, marking an 18 percent decline in layoffs from August.
Friday’s jobs report comes before the Federal Reserve’s final policy decision before the midterm election. During its two-day policy meeting on October 27-28, the central bank will decide whether to raise, cut or maintain interest rates.
The odds increasingly suggest the Fed will hold rates steady in the 3.75-4.00 percent range, according to CME FedWatch, a tool that tracks the likelihood of monetary policy decisions. The FedWatch tool indicates there is currently a 77.3 percent chance that rates will hold steady, up from 35.8 percent this time last week.
US markets are trending upward on the heels of the report. The tech-heavy Nasdaq is up 1.5 percent, the Dow Jones Industrial Average is up 0.6 percent and the S&P 500 is up 1.1 percent in midday trading.
The price of gold, which is largely considered a safe investment during times of economic uncertainty, rose 1.1 percent to $4,223.49 amid the jobs report.