September Jobs Report Adds 29,000 Jobs, Less Than Expected

The US economy added 29,000 jobs in September – a slower growth than expected, according to several outlets. Unemployment rates also rose to 4.2%.

The Details: The figure was below the 90,000 estimate from economists. Unemployment was also above the previous 4.1%, according to a poll by LSEG. Fox Business (Lean Right bias) reported that jobs were down in the private sector, while manufacturing added 9,000 jobs. Healthcare added 16,700 jobs in ambulatory care, while nursing and residential care facilities lost 8,700 jobs. Construction also added 11,000 jobs in September, which was above the average of 10,000 over the last 12 months. Long-term unemployment accounted for 27.1% of all unemployed people, according to Fox Business.

For Context: Jobs reports from July and August totaled 154,000 jobs added, which was 60,000 less jobs than originally reported. The Associated Press (Lean Left) noted that unemployment rose partly because 485,000 people entered the workforce and not all of them found jobs right away.

Resilient Labor Market: Fox Business noted all the numbers fell below expectations. It quoted a Vanguard senior economist who said the figures mean "the labor market remains resilient, but it is not accelerating." The economist also said the report "strengthens the case for the Federal Reserve to remain patient" before increasing interest rates again. A JPMorgan Wealth Management strategist told Fox Business the report is "further evidence that the labor market is not a source of inflationary pressure" and that it's "an ideal outcome for financial markets." The Wall Street Journal (Center) and Associated Press also noted the labor market remains resilient.

Low-Hire, Low-Fire: Wall Street Journal said, "The economy doesn't need to generate as many jobs as it used to just to keep the labor market steady. The population is aging, and an immigration clampdown has reduced growth in the supply of workers." It wrote that the job market remains in a low-hire, low-fire state that "provides stability but can be frustrating for Americans used to more opportunity." That dynamic, it said, has made it harder for newcomers to break into the job market or for people to seek new roles.

Looking Toward Midterms: Associated Press called the numbers "disappointing." It said the new hiring data could "draw the Federal Reserve's attention back to hiring and jobs" as many Fed officials have focused more on fighting inflation. AP contextualized the report within Americans' feelings ahead of midterms, saying they feel "unsettled" over the economy and the high cost of living. It also focused on employer and employee sentiment, quoting a Glassdoor chief economist who said "Employee confidence has been continuously grinding downward over the last year as workers grow increasingly anxious about everything from layoffs to AI."

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