US September job growth slows to 29,000 as unemployment ticks up

The US labour market added just 29,000 jobs in September, the lowest monthly gain since August, according to the Bureau of Labour Statistics (BLS).

Employment growth fell sharply from 133,000 jobs in August, while the unemployment rate rose modestly from 4.1 % to 4.2 % over the same period. Headcounts were largely unchanged across major sectors, from technology to retail, as hiring slowed markedly.

Economists said the slowdown points to a cooling economy and reduces the likelihood of further Federal Reserve interest‑rate hikes. George Brown, senior economist at Schroders, described the year’s job gains as a “rollercoaster” but warned that a single soft report is unlikely to signal a lasting collapse.

Bradley Saunders of Capital Economics called the lower figure “not disastrous”, noting that cuts to government roles and temporary visa policy changes weighed on overall growth. Jeffery Roach, chief economist at LPL Financial, highlighted a tension between goods‑producing sectors supporting the AI boom and service industries feeling the impact of tech‑driven changes, adding that the softer labour market lowers the odds of two more Fed hikes.

The data contrast sharply with President Donald Trump’s claim that the US economy is “booming”. A recent AP/NORC poll showed only 17 % of Americans approve of his handling of cost‑of‑living issues and 26 % approve of his overall economic management, both new lows for the president.

Source: BBC News. Photo: Jermaine Lewis / Pexels.