A much weaker month than expected
The US economy added only 29,000 jobs in September, the Bureau of Labor Statistics said. Economists surveyed by Dow Jones had expected about 84,000. The unemployment rate rose to 4.2% from 4.1%, and average hourly earnings grew just 0.1% in the month.
The result was far below the 162,000 jobs added in August. It was the last monthly jobs report before the midterm elections, which gave the figures extra attention in Washington.
Hiring has cooled through the year
The three-month average of payroll gains fell to 51,000. Three years ago, when the Federal Reserve began cutting interest rates, that average was 179,000. Some of the slowdown reflects slower growth in the labour force, which makes smaller job gains less worrying than they look.
Layoffs and hiring rates both stayed low, according to the Job Openings and Labor Turnover Survey. That points to little movement between jobs. Wage growth is also easing, with pay up 3.0% from a year ago against 3.8% a year earlier.
Costs still weigh on households
Gas prices remain almost 50% higher than in late February, when the United States and Israel began the war against Iran, according to NBC News. Commercial diesel prices are about 70% higher than earlier in the year. Those costs feed into transport, farming and retail.
Economists say the mixed picture leaves the Federal Reserve with a harder choice. A cooling labour market argues for lower interest rates, while stubborn energy costs argue for caution. Markets will watch the next inflation reading for signals about which way the central bank moves.