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U.S. hiring slows sharply as economy adds 29,000 jobs in September

The Commerce Department reported on Friday that U.S. employers added 29,000 jobs in September, well below economists’ expectations of 84,000, while the unemployment rate edged up from 4.1% to 4.2%. Previous estimates were also revised lower, with employers now reported to have cut 10,000 jobs in July and added 133,000 in August, reducing the combined total for those two months by 60,000 jobs. Healthcare added 17,000 jobs, construction gained 11,000, and manufacturing employment increased slightly, while government, information, and financial-sector employment declined. Average hourly wages rose 3% from a year earlier, below the 3.4% annual inflation rate reported for August. The article characterizes the labor market as increasingly “low-hire, low-fire,” with fewer workers needed to maintain a stable unemployment rate because of an aging population and lower immigration. The report also showed no signs of labor-market tightening that would add to inflationary pressures, giving Federal Reserve officials room to keep interest rates unchanged while awaiting further inflation data.

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