September Job Growth Slows, Revisions Hint at Weaker Economy
U.S. adds 29,000 jobs in September as revised data shows weaker gains, raising questions about Fed’s next move.
2 min read
U.S. employers added just 29,000 jobs in September, marking a slowdown in hiring compared to previous months, according to federal data released Friday. The unemployment rate rose slightly to 4.2% from 4.1%, and the report revealed that previous months’ job gains were revised downward, signaling a potential weakening in the labor market.
Revisions Erase Previous Gains
The Bureau of Labor Statistics (BLS) revised July’s payrolls down from a gain of 21,000 jobs to a loss of 10,000, while August’s gains were adjusted from 162,000 to 133,000. These changes erased a combined 60,000 previously reported job gains, casting doubt on earlier optimism about the economy’s strength.
The average monthly job growth from July through September was around 51,000, a significant slowdown compared to earlier in the year. Wage growth also showed signs of cooling, with average hourly earnings rising just 0.1% in September and increasing 3% year-over-year to $37.81.
Industry-Specific Trends
The job market showed mixed results across industries. Health care added 17,000 jobs, slightly below its average monthly gain, while construction and manufacturing saw increases of 11,000 and 9,000, respectively. However, several white-collar sectors experienced job losses, including information, financial activities, and professional and business services, which each saw declines of 10,000, 7,000, and 9,000 jobs, respectively.
Fed’s Next Move Uncertain
The weaker employment data could give the Federal Reserve more flexibility in its next interest rate decision. After raising rates in September, the central bank is now expected to maintain its current rate at the October meeting, with a 16% probability of another rate hike, according to Reuters. Treasury yields fell following the report, while stock futures rose as investors interpreted the data as reducing pressure on the Fed to tighten monetary policy.
Public Sentiment and Future Outlook
Despite historically low layoff rates, Americans’ expectations of rising unemployment over the next year have reached their highest level since April 2020. This signals growing concerns about the future of the job market, even as current conditions remain relatively stable.
Source: Daily Caller
