US Job Growth Disappoints in September With Only 29,000 Payrolls Added
SCMP · 3 SOURCESabout 2 hours ago2 MIN
Summary
The United States added a disappointing 29,000 nonfarm payroll jobs in September, according to data released Friday by the U.S. Bureau of Labor Statistics, down sharply from the downwardly revised 133,000 jobs added in August . The unemployment rate rose to 4.2 percent last month from 4.1 percent in August . Economists surveyed by Reuters had forecast payrolls advancing by 90,000, with estimates ranging as high as 180,000 and as low as 35,000 . Average hourly earnings for American workers increased 3 percent year-on-year in September, falling short of expectations .
Key Points
- US nonfarm payrolls increased by only 29,000 in September, compared with downwardly revised 133,000 gain in August
- Unemployment rate climbed to 4.2 percent from 4.1 percent the previous month
- Average hourly earnings rose 3 percent year-on-year, below forecast expectations
- Economists attributed weakness partly to seasonal adjustment factors related to Labour Day falling late in the month
- First-time unemployment benefit applications remain near 57-year lows, indicating no broad lay-off surge
- Economists forecast growing headwinds from US-Israel tensions with Iran, including record diesel prices
Why It Matters
The weak September report comes amid growing concerns about energy price pressures and trade tensions, with manufacturers expressing anxiety over tariffs in an Institute for Supply Management survey . While economists suggest the September slowdown may reflect temporary calendar quirks rather than fundamental weakness, they warn that labour market disruption from geopolitical tensions could emerge by year-end and into 2027 .
The weak September report comes amid growing concerns about energy price pressures and trade tensions, with manufacturers expressing anxiety over tariffs in an Institute for Supply Management survey . While economists suggest the September slowdown may reflect temporary calendar quirks rather than fundamental weakness, they warn that labour market disruption from geopolitical tensions could emerge by year-end and into 2027 .