Payrolls–and Unemployment Rate–Tick Upward in September

(Stock photo credit: Artem Podrez via Pexels)

The job market trended somewhat weaker in September, with a payroll increase of only 29,000 and the prior two months revised downward by 60,000 jobs.

The U.S. Bureau of Labor Statistics reported the unemployment rate ticked up to 4.2%, largely due to a higher participation rate as more people actively looked for work. Wage growth slowed further to a 3% rate.

“The three sectors that have contributed most of the job growth in recent months, health care, hospitality and government, showed slower growth in September,” MBA Chief Economist Mike Fratantoni said. “The financial sector continues to lose jobs at a slow pace, while construction jobs are increasing, particularly in nonresidential construction.”  Fratantoni noted the Federal Reserve is unlikely to cut rates anytime soon due to inflation. “However, these data showing a softer job market may be enough to keep the Fed on hold at their October meeting,” he said. “Wage growth continues to run below the pace of inflation, which will hamper consumer spending over time.”