US job market is losing its hiring spark
AgenciesUS employers added a disappointing 29,000 jobs and the unemployment rate ticked up last month, the government reported Friday, a month before voters go to the polls in pivo...
The U.S. job market showed weaker-than-expected hiring in September, according to the latest government data released before the upcoming midterm elections. Employers added only 29,000 jobs, down from 133,000 in August, and the unemployment rate ticked up to 4.2% from 4.1%. Economists had anticipated around 90,000 jobs created in September.
The revised figures from July and August also showed a decline in total payrolls by 60,000 positions. While the Federal Reserve's primary focus is on controlling inflation, the weaker-than-expected hiring data may prompt the central bank to maintain interest rates at their current level during the upcoming meeting. Average hourly wages rose by just 3% compared to the previous year, the smallest increase since May 2021.
The healthcare sector expanded slightly with 17,000 new jobs, but this was less than half the average 33,000 monthly hires over the past year. In contrast, construction and manufacturing added 11,000 and 9,000 jobs, respectively. The job market remains resilient despite various challenges, including trade wars, persistent inflation, and higher interest rates.
However, the unemployment rate remains low, and inflation has been above the central bank's 2% target for over five years. The September jobs report is the final one published before the November 3 elections, which will determine whether President Trump's Republicans retain full control of Congress.
Written by urgent.news from Qatar Tribune Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
