U.S. unemployment ticks up to 4.2% as Labor Department releases disappointing job numbers for September

In the week leading up to the U.S. midterm elections, the Labor Department released disheartening September employment figures, with the unemployment rate rising to 4.2%. This comes as Americans grapple with the high cost of living and economic uncertainty. Employers added a meager 29,000 jobs, a sharp decline from August's revised 133,000.

The unemployment rate, at 4.2%, remains low, but economists had predicted September job growth to be 90,000. Average hourly wages increased by just 3% last year, the smallest gain since May 2021. The job market's resilience has been tested by trade wars, inflation, high interest rates, and tensions with Iran. Before the Nov. 3 election, the S&P 500 and Nasdaq composite both gained, while Treasury yields fell.

The 10-year Treasury yield was 5.17%, down from 5.24%. Despite economic recovery, many Americans remain dissatisfied with the economy and its impact on their living costs. Polls show that only 17% of adults approve of President Trump's handling of the cost of living, a new low. U.S. consumer confidence dropped to its lowest level in over a decade.

Glassdoor reports that employee confidence has hit record lows, with workers growing increasingly anxious about job security, layoffs, and artificial intelligence. The job market has been characterized by a "low-hire, low-fire" scenario, where employers are neither laying off nor hiring significantly. The average unemployed person has been out of work for more than six months, the longest since February 2022.

This environment has discouraged workers from quitting their jobs, as they fear the extended time it takes to find new employment.