US employers added 29,000 jobs in September, compared with an August increase of 133,000 after revisions, while unemployment rose from 4.1% to 4.2%, according to the Labor Department's October 2 release and Associated Press reporting. The figures arrive a month before midterm elections amid public concern about the cost of living and the condition of the economy.
The Bureau of Labor Statistics also cut July and August payroll estimates by a combined 60,000. July now shows a loss of 10,000 jobs. The agency said revisions reflect additional employer reports and recalculated seasonal factors; the latest figures therefore present a weaker summer hiring picture than previously reported.
Private-sector average hourly earnings rose 0.1% in September to $37.81, up 3% over a year, according to the bureau. The average working week remained 34.4 hours. These measures accompany the payroll count and help describe changes in pay and working time beyond the headline number of jobs.
Reuters reported that more people entering the workforce helped explain the higher unemployment rate. Economists cited by the agency cautioned that a late Labor Day holiday can depress initial September payroll estimates. Reuters also reported no signs of a broad increase in layoffs, qualifying the picture of sharply weaker recruitment.
The report reduced expectations of another Federal Reserve interest-rate increase in October, according to Reuters. Associated Press reporting said US stocks advanced after the figures eased concerns that an overheated economy could worsen inflation. Slower hiring and modest wage growth shaped that response, without determining the central bank's next decision.
In its assessment of the latest figures, the bureau described overall employment as little changed and counted 7.1 million unemployed people. Its October employment report is scheduled for November 6 at 8:30 a.m. Eastern time. That release will provide the next monthly reading on hiring, unemployment and earnings, as businesses and households assess the economy's direction.
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