US Adds 29,000 Jobs in September as Unemployment Rises to 4.2%
Updated
Updated · CNN · Oct 2
US Adds 29,000 Jobs in September as Unemployment Rises to 4.2%
3 articles · Updated · CNN · Oct 2
Summary
September payrolls rose by just 29,000, far below the roughly 90,000 expected, while the unemployment rate edged up to 4.2% in the final official jobs snapshot before the midterm elections.
More people entered or re-entered the labor force, lifting participation and helping push unemployment higher even as hiring slowed.
Revisions deepened the softness: August job growth was cut to 133,000 and July flipped to a 10,000 loss, while annual wage growth slowed for a fourth straight month to 3%, the weakest since May 2021.
Markets treated the report as reducing pressure on the Federal Reserve to raise rates later this month; the S&P 500 gained 0.9%, the Nasdaq 1.3%, and the 10-year Treasury yield fell to 5.21%.
The report reinforces a low-hire, low-fire labor market shaped by retirements, weaker immigration and AI adoption, with higher oil prices, policy uncertainty and the Iran war adding risks to hiring.
As job growth stalls and inflation bites, will the Federal Reserve's cautious rate strategy trigger the very recession it aims to avoid?
If layoffs remain historically low despite plunging consumer confidence, how long can employers sustain this fragile balancing act before shedding jobs?
With AI quietly replacing entry-level roles, are recent college graduates facing a permanent lockout from the traditional corporate ladder?