U.S. added just 29,000 jobs in September, with unemployment rate rising to 4.2%
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Summary
The U.S. economy added just 29,000 jobs in September, significantly missing the forecast of 90,000, according to the government’s Nonfarm Payrolls Report. The unemployment rate unexpectedly rose to 4.2%, up from August's 4.1%. Bitcoin rose about 2% to just under $87,000 following the data release.
Why it matters
The report indicates weakness in the U.S. labor market, which could provide the Federal Reserve with more reason to keep interest rates steady despite ongoing inflation concerns. The market reaction included gains in U.S. stock index futures, a decline in Treasury yields, a rise in gold prices, and a weaker U.S. dollar.
Key context
August's job gains were revised down from 162,000 to 133,000, and July's previously reported gain of 21,000 was revised to a loss of 10,000 jobs. Average hourly earnings rose only 0.1% in September, below expectations, and were up 3.0% year-over-year, slightly lower than forecasts.
Key numbers and entities
The U.S. added 29,000 jobs in September; the unemployment rate increased to 4.2%. August and July job figures were revised to 133,000 and a loss of 10,000, respectively. Average hourly earnings rose 0.1% month-over-month and 3.0% year-over-year. Bitcoin traded near $86,600-87,000. The 10-year Treasury yield fell to 5.17%, the 2-year yield to 4.71%, and the Nasdaq futures rose 1.2%.
What remains unclear
The source does not provide detailed information on sector-specific job gains or losses, nor does it specify how the Federal Reserve will respond to this report beyond the suggestion that rate hikes could be paused. The long-term implications for inflation and economic growth are not discussed.