US employers added just 29,000 jobs in September, a sharp slowdown from August that has economists trimming bets on further Federal Reserve rate hikes. The report lands a month before the midterm elections, widening the gap between the administration's economic messaging and voters' views on costs of living.
Hiring slows sharply across sectors
US employers added just 29,000 jobs in September, down from a revised 133,000 in August, according to the Bureau of Labor Statistics. Headcounts were little changed across major sectors, from tech to retail, as firms held staffing steady rather than hire or cut.
The unemployment rate rose to 4.2%, up from 4.1% in August. George Brown, senior economist at Schroders, said job gains have swung sharply this year, but a single soft report is unlikely to point to a lasting collapse. Bradley Saunders, North America economist at Capital Economics, said the lower figure was not disastrous, adding that a drop in government roles and temporary visa policy changes weighed on overall growth.
Fed rate-hike bets shift
The figures signal a cooling economy, which experts said reduced the likelihood of further interest rate hikes by the Federal Reserve. Jeffery Roach, chief economist at LPL Financial, said the data showed tension between goods-producing sectors supporting the AI boom and service industries feeling the effects of that shift. He added that given the overall softness of the labor market, the likelihood of two Fed hikes is going lower.
Political fallout ahead of midterms
The BLS report stands in contrast to President Donald Trump's insistence that the economy is booming. That disconnect is likely to present challenges for the president and fellow Republicans as they campaign with a month to go before the midterm elections.
According to an AP/NORC poll released Thursday, just 17% of Americans approve of the president's handling of cost-of-living issues, while 26% approve of his handling of the economy overall. Both are new lows for Trump, surpassing the lowest marks recorded for Joe Biden during his term.
Trump has acknowledged the gap between his messaging and public sentiment. At a White House event this week, he said: "I've done a very bad job of explaining how good the country is doing."
Source: BBC News
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