U.S. Adds Just 29,000 Jobs in September

September brought a sharp loss of momentum in the labor market. Employers nationwide created 29,000 positions, far below economists’ forecast of 90,000. August’s revised gain was 133,000. The unemployment rate edged from 4.1% in August to 4.2%, while revisions reduced the combined July and August totals by another 60,000 jobs.

Pay growth also cooled. Average hourly earnings were 3% higher than a year before, the smallest annual increase recorded since May 2021. After Friday’s figures appeared, stock-index futures gained further, while the 10-year Treasury yield declined from 5.24% the previous day to 5.17%. For Simi Valley households, those movements matter because the hiring picture carries consequences for interest rates and consumer prices.

The broader pattern is one of limited hiring without widespread layoffs. Economists characterize it as a low-hire, low-fire market: people already employed generally retain their positions, but those searching face a tougher path. In August, unemployed workers had been without work for an average exceeding six months—the longest such stretch since February 2022. Glassdoor’s employee-confidence measure also reached its lowest point since its records began in 2016.

Economic unease remains pronounced. Conference Board data showed consumer confidence at a more-than-decade low this month. More than 28% of respondents anticipated fewer available jobs in six months, compared with 14% expecting more. Friday’s release is the final employment update before the Nov. 3 midterm elections, when control of Congress will be decided.