US Job Market Slows as Employers Add Just 29,000 Jobs in September

This data points to a slowdown in hiring as the US approaches key midterm elections.

Government data shows that hiring has been weakening across several parts of the economy. The labour department reported a decline in hiring from a revised 133,000 in August. Economists had anticipated employers would add around 90,000 jobs last month.

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The latest report comes after jobless claims remained low. With initial applications for unemployment benefits falling to 197,000 in the week ending September 26, the lowest level since mid-July.

Experts are cautioning that the slowdown in hiring might be linked to the Trump administration's revocation of work authorisations for 350,000 Haitians. The impact of this move on employee confidence is being closely monitored.

Daniel Zhao, chief economist at Glassdoor, noted that worker anxiety has been increasing over the past year, driven by concerns about layoffs and the impact of automation.

The September figures reveal weaker hiring across several sectors. Federal, state, and local governments cut 17,000 jobs, while professional and business services companies reduced payrolls by 9,000. In contrast, healthcare companies added 17,000 jobs, which is roughly half their average monthly gain of 33,000 over the past year.

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The weaker hiring figures are likely to draw greater attention from the Federal Reserve, which is focused on achieving maximum employment. Several Fed officials have stated that inflation remains their primary concern. Despite the US central bank's ongoing efforts to manage inflation that has remained above its 2% target for more than five years.

Financial markets initially reacted positively to the jobs data, with futures for the S&P 500 and Nasdaq composite adding to their gains. The yield on the 10-year Treasury fell to 5.17% from 5.24% a day earlier.