U.S. adds 29,000 jobs in September, unemployment edges up
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The economy added only 29,000 jobs in September, while the unemployment rate ticked up to 4.2% from 4.1%, the Labor Department said on Friday.
Why it matters: Hiring stumbled in September, breaking with other signs of robust economic growth.
By the numbers: Economists had expected the economy to add 84,000 jobs last month.
- Revisions released Friday also showed that employers added 60,000 fewer jobs in July and August combined than previously estimated, pointing to a more muted job market expansion than it had seemed.
Yes, but: The unemployment rate rose for broadly good reasons — more Americans entering the labor force but not yet having found a job.
- The labor force participation rate rose by 0.2 percentage point, and the share of adults who are employed also ticked up in September.
The big picture: The Federal Reserve raised interest rates for the first time in three years last month, a move aimed at tackling still-high inflation. Officials have expressed confidence that the jobs market can handle higher rates.
What to watch: Fed officials this week have played down the need for another immediate rate hike in October.
- New York Fed president John Williams said there was "no need for urgency," while Fed vice chair Philip Jefferson said policymakers may need more time to judge whether another move is warranted.
- Both officials described a solid jobs market, with receding risks to employment. Friday's jobs report adds a caveat to that view.
