US job growth slowed sharply in September, with employers adding just 29,000 jobs as the labour market showed signs of losing momentum heading into the final quarter of the year.
The September increase was far below the 90,000 jobs economists had expected. August’s payroll gain was also revised down to 133,000 from the previously reported 162,000, while July was revised to show a loss of 10,000 jobs.
The unemployment rate rose to 4.2% from 4.1% in August as more people entered the workforce. The labour-force participation rate increased to 61.8%, while household employment rose by 406,000.
Healthcare remained the largest source of job growth, adding 17,000 positions, although that was well below its average monthly gain over the past year. Construction added 11,000 jobs and manufacturing increased by 9,000, while employment in financial activities fell by 7,000.
Economists said seasonal factors surrounding the late Labor Day holiday may have contributed to the weak September figure. They also pointed to high energy costs, supply-chain pressures and trade uncertainty as potential risks to employment in coming months.
The weak report has sharply reduced market expectations of another Federal Reserve interest-rate increase at its October meeting, although inflation remains a key consideration for monetary policy.
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