US job growth slowed sharply in September with employers adding just 29,000 jobs, according to the latest report from the US Bureau of Labor Statistics (BLS). The unemployment rate also increased slightly to 4.2% from 4.1% in August.
The September job gain was much lower than the 133,000 jobs added in August after revisions. The BLS also revised July employment down to a loss of 10,000 jobs. Combined, July and August employment was revised down by 60,000 jobs.
The latest figures show that hiring has slowed across the US economy. However, the BLS said employment in all major industries changed little during September.
Healthcare continued to add jobs, although growth was slower than earlier in the year. Construction also recorded a gain while manufacturing employment increased.
Some sectors recorded job losses. Employment declined in information, financial activities and professional and business services. Government employment also fell during the month.
Wage growth eased in September. Average hourly earnings increased by 0.1% during the month while wages were up 3.0% over the past year. The average private-sector workweek remained unchanged at 34.4 hours.
The labor force participation rate increased to 61.8% from 61.6%, as more people entered the workforce. The unemployment rate rose to 4.2% as the increase in the labor force was larger than the rise in employment.
The weaker employment figures have reduced expectations for another Federal Reserve interest rate increase in October. Reuters reported that the softer jobs report strengthened expectations that the Fed may hold rates steady at its October meeting, although upcoming inflation and other economic data could still affect the decision.
Economists quoted by Reuters said the report did not show signs of widespread layoffs. Instead, the data points to a labor market where companies are hiring cautiously while employment remains relatively stable.
The September jobs report is now an important indicator for businesses, investors and policymakers as they assess the strength of the US economy and the Federal Reserve’s next steps on interest rates.
