U.S. Job Growth Slows in September, Unemployment Rate Rises to 4.2%

The U.S. job growth in September fell significantly short of market expectations, signaling a slowdown in the labor market.

According to the U.S. Bureau of Labor Statistics, non-farm jobs increased by 29,000 in September, a figure well below the Dow Jones estimate of 84,000.

By sector, healthcare added 17,000 jobs, but this was below the 12-month average increase of 33,000. Construction and manufacturing saw increases of 11,000 and 9,000 jobs, respectively. In contrast, the financial sector experienced a decline of 7,000 jobs, while wholesale and retail trade, transportation, and leisure and hospitality showed little change.

Revisions to the previous two months' employment data also indicated a downward trend. July's job growth was revised from an increase of 21,000 to a decrease of 10,000, while August's increase was adjusted from 162,000 to 133,000. This means that the total job growth for July and August was reduced by 60,000 from earlier reports.

The average hourly wage in September rose by 0.1% to $37.81, with a year-over-year increase of 3.0%.

The unemployment rate increased to 4.2%, up 0.1 percentage points from the previous month. The U.S. unemployment rate has fluctuated between 4.1% and 4.3% since March.