US job growth slows sharply in September, unemployment rises
US job growth slowed more than expected in September, but that likely does not signal a material shift in the labour market, with the weakness likely related to a calendar quirk. Nonfarm payrolls increased by 29,000 jobs last month after a downwardly revised 133,000 rise in August, the Labor Department’s closely watched employment report showed on Friday. Economists polled by Reuters had forecast…
In September, the US economy saw a slowdown in job growth with only 29,000 new jobs added, according to the Labor Department's employment report. This was significantly lower than the previously revised 133,000 jobs added in August and well below economists' expectations of 90,000 new jobs. The lower-than-expected growth was attributed to a calendar quirk and seasonal adjustment factors.
Despite the weaker job growth, the unemployment rate remained low at 4.2%, down from 4.1% in August. This was due to retirements and the Trump administration's immigration crackdown reducing the labor supply. Economists expect increasing headwinds from the US-Israel conflict with Iran, including high energy prices and strained supply chains, to start impacting the labor market later in the year.
Diesel prices are at record highs and could further pressure certain sectors. Tariffs are also a concern, with manufacturers showing growing anxiety over the trade war with Canada. The Federal Reserve recently raised its benchmark interest rate by 25 basis points, signaling potential further increases in borrowing costs.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
