U.S. Added Just 29,000 Jobs in September as Unemployment Rate Rises to 4.2%
Key Takeaways
- •U.S. nonfarm payrolls rose by only 29,000 in September, well below the consensus forecast of 90,000 and down sharply from August's revised 133,000 gain.
- •Prior months were revised lower, with August's figure cut from an initially reported 162,000 to 133,000 and July's gain of 21,000 flipped to a loss of 10,000 jobs.
- •The unemployment rate unexpectedly increased to 4.2%, exceeding both the 4.1% forecast and August's 4.1% reading.
- •Wage growth cooled, with average hourly earnings up just 0.1% month over month and 3% year over year, missing forecasts of 0.3% and 3.2%, respectively.
- •Following the report, bitcoin held gains just below $87,000, Nasdaq futures rose 1.2%, the 10-year Treasury yield fell 7 basis points to 5.17%, gold gained more than 1%, and the dollar declined against major currencies.
September's U.S. employment report pointed to a softening labor market, potentially giving the Federal Reserve room to hold interest rates steady even as inflation remains elevated. Compiled by the Bureau of Labor Statistics, the monthly Nonfarm Payrolls release is one of the most closely watched readings on the U.S. economy, feeding expectations for Fed policy that shape the dollar, Treasury yields, and risk assets ranging from stocks to bitcoin.
The U.S. added just 29,000 jobs in September, according to the government's Nonfarm Payrolls Report released Friday morning — well below the consensus forecast of ,000 and down sharply from August's gain of 133,000, which was revised down from the originally reported 162,000. July's increase of 21,000 was also revised, flipping to a loss of 10,000 jobs.
The unemployment rate unexpectedly rose to 4.2%, versus expectations of 4.1% and August's reading of 4.1%.
Wage growth cooled as well. Average hourly earnings rose just 0.1% last month, well shy of forecasts for 0.3% and August's 0.3% pace. On a year-over-year basis, average hourly earnings were up 3%, against forecasts for 3.2% and August's 3.1%. Wage trends are among the indicators Fed officials monitor for inflation pressure, giving the cooling pay data added significance while prices remain elevated.
Financial markets reacted quickly to the release. Bitcoin, already higher on the session, held its earlier gains in the minutes following the data, trading just below $87,000 — up more than 2% over the past 24 hours at $86,600. U.S. stock index futures added to their gains, with the Nasdaq rising 1.2%.
In fixed income and commodities trading, the 10-year Treasury yield slumped by 7 basis points to 5.17%, and the 2-year yield fell by a similar margin to 4.71%. Gold gained more than 1%, while the U.S. dollar fell against major currencies.
Attention now turns to upcoming inflation readings and Federal Reserve officials' commentary for further signals on how policymakers balance a cooling labor market against still-elevated price growth.
Source: CoinDesk (reporting by James Van Straten and Stephen Alpher).
