US Adds Just 29,000 Jobs in September as Unemployment Rises to 4.2%, Easing Fed Hike Bets

The US economy added just 29,000 jobs in September, far below the roughly 90,000 economists expected, while the unemployment rate rose to 4.2% from an expected 4.1%, the Bureau of Labor Statistics reported on Friday, October 2.

Prior months were revised lower as well. August payroll growth was cut from 162,000 to 133,000, and July went from a gain of 21,000 to a loss of 10,000, leaving the two months combined 60,000 below earlier estimates. Economists cautioned that August’s strong gain likely reflected seasonal factors that overstated hiring. The labor market has held up so far despite an aging population, rapid AI adoption, higher oil prices, policy uncertainty and the war with Iran.

The data follows dovish comments from Fed officials Williams and Jefferson, which had already cut market-implied odds of an October rate hike from roughly 70% to about 25-30%, according to CoinDesk and investingLive. After the release, investingLive said the weak print looks unlikely to revive hike bets in the near term. Bitcoin, above $86,000 before the data, broke out of its recent range, gold held above $4,140, and equities recovered as Treasury yields eased.

Sector details, wage growth and closing prices were not yet available at the time of writing.

Sources:

• CNN: The US economy added just 29,000 jobs last month, fewer than expected
• Fox Business: US economy added 29,000 jobs in September, a slower pace than expected
• Trading Economics: United States Non Farm Payrolls
• investingLive: market news summary
• CoinDesk: Crypto traders are in risk-on mode as bitcoin dominance nears return to 60%