The US added a fewer-than-expected 29,000 jobs in September while payroll gains for the prior two months were revised lower, including a net loss in July, underscoring weak hiring.
The lower hiring rate last month followed a revised 133,000 jobs added in August, fewer than the 162,000 initially reported, while July's figures were revised to a loss of 10,000 jobs compared with initially reported gains of 21,000, for combined downward revisions of 60,000, the Bureau of Labor Statistics reported.
Hiring last month was down from the 90,000 median expected by economists surveyed by Trading Economics.
Average monthly job gains over the prior 12 months were just 45,000, in an economy that economists say has seen little hiring and few layoffs amid a shrinking labor force driven by retirements and immigration crackdowns.
Following the report, the CME FedWatch tool showed just an 18pc chance of a rate hike at the Federal Reserve's next policy meeting later this month, down from 64pc a week earlier.
The yields on 10-year Treasury notes fell by three basis points to 5.2pc after the report, having tipped near 5.3pc earlier this week, a two-decade high, on inflation and debt concerns.
Healthcare added 17,000 positions in September, construction gained 11,000 and manufacturing added 9,000, while financial activities shed 7,000 jobs. Manufacturing employment was up by 72,000 from a recent low in December last year. Government shed 17,000 jobs. Transport and warehousing added 7,600 jobs, while retail trade added 6,000. Information shed 10,000 jobs.
The unemployment rate edged up to 4.2pc in September from 4.1pc the prior month.
Average hourly earnings rose by an annual 3pc, slowing from 3.1pc growth the prior month.
The labor force participation rate, which reflects those working and actively seeking work, rose to 61.8pc from 61.6pc the prior month and 61.4pc in July, the lowest since the Covid-19 pandemic in 2020.
