US September Nonfarm Payrolls Rise by Only 29,000 as Unemployment Reaches 4.2%

U.S. labor market momentum slowed substantially in September as nonfarm payrolls rose by only 29,000, widely trailing forecasts of 85,000 to 90,000. The unemployment rate rose to 4.2% from 4.1%, while the labor force participation rate edged up to 61.8% from 61.6%. Hiring in August was downwardly revised to 133,000 from 162,000, bringing two-month net revisions to minus 60,000. Wage growth cooled, with average hourly earnings advancing 0.1% month-over-month and 3.0% year-over-year. The figures dampened expectations for Federal Reserve interest rate hikes.