September Jobs Gain Misses Forecasts at 29,000

The U.S. labor market cooled sharply in September as employers added only 29,000 jobs, well below the 90,000 expected. Unemployment rose to 4.2 percent while earlier months were revised down by a combined 60,000 positions. Average hourly earnings rose just 0.1 percent month over month, the smallest gain of the year.

Bureau of Labor Statistics data released October 2 showed the two-month downward revision totaling 60,000. Wage growth that had been running at 0.3 percent slowed to 0.1 percent, matching the weakest reading since April of the prior year. The report follows four months of Kevin Warsh’s tenure as Federal Reserve chairman.

Warsh took office pledging an independent policy focused on the central bank’s dual mandate of stable prices and maximum employment. Markets now price in a higher likelihood that the Fed will keep rates elevated or raise them further to address persistent inflation, even as political pressure favors lower rates.

CNBC commentator Rick Santelli called the print a “big, big miss,” noting the gap between forecasts and the actual outcome plus the wage slowdown. White House economic adviser Kevin Hassett described the figures as consistent with a resilient economy.

The data leave open whether the slowdown reflects normal cooling after years of tight labor markets or signals a broader weakening that could affect consumer spending and Fed decisions in coming months.