U.S. job market slows as only 29,000 jobs are added in September
The U.S. labor market showed clear signs of slowing in September, with the economy adding just 29,000 jobs. The unemployment rate remained at 4.2%, where it has stayed relatively stable in recent months. Job growth has now slowed significantly, with the U.S. adding an average of only 45,000 jobs per month over the past year.
The weakness was broad across the economy, with no major industry showing strong job growth. Healthcare added 17,000 jobs and construction added 11,000, while financial services lost 7,000 jobs. Wage growth also slowed, with average hourly earnings increasing just 0.1% in September and 3.0% compared with a year earlier.
Previous employment numbers were also revised lower. July was revised from a gain of 21,000 jobs to a loss of 10,000, while August was lowered from 162,000 to 133,000. Together, the revisions show 60,000 fewer jobs than previously reported.
For markets, the report strengthens the view that the U.S. labor market is cooling. Slower job and wage growth could give the Federal Reserve more room to lower interest rates if inflation remains under control. Lower rates and easier financial conditions would generally be supportive for risk assets, including equities and crypto.
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