U.S. employers added 29,000 jobs in September, well short of the roughly 90,000 economists expected, the Bureau of Labor Statistics said Friday. The unemployment rate rose to 4.2% from 4.1%.
Revisions made the picture weaker. August’s gain was cut to 133,000 from 162,000 and July’s to a loss of 10,000, together 60,000 fewer jobs than previously reported.
Average hourly earnings rose 0.1% on the month to $37.81, up 3.0% from a year earlier. With inflation at 3.4%, real wages are falling.
The report complicates the Fed’s path. Officials raised rates in September partly on the strength of the labor market. A softer job market gives those wary of further hikes an argument, but inflation remains well above the 2% target.
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