3 hrs ago
US jobs growth plunges, shaking Fed rate-hike expectations
US companies hired far fewer people in September than economists expected.
They added 29,000 jobs instead of about 90,000.
The unemployment rate also increased slightly to 4.2%.
Earlier job estimates for July and August were lowered too.
This suggests that hiring is slowing, even though unemployment remains relatively low.
The report may make it harder for the Federal Reserve to raise interest rates again.
However, Federal Reserve officials are still watching inflation closely.
Investors reacted by pushing stock futures higher and bond yields lower.
Oil prices also fell below $100 a barrel.
US employers added 29,000 jobs in September, below the roughly 90,000 expected by Bloomberg.
The unemployment rate rose to 4.2% from 4.1% in August.
Job gains for July and August were revised down by a combined 60,000.
Weak hiring reduced market expectations of another Federal Reserve rate increase.
US stock futures rose, Treasury yields fell, and Brent crude dropped below $100 a barrel.
- Who
- US employers, workers, financial-market traders, and the Federal Reserve.
- What
- September employment growth slowed sharply to 29,000 jobs, while unemployment rose to 4.2%.
- Where
- The United States; the report was issued by the US Bureau of Labor Statistics.
- When
- The data covers September and was released before the Federal Reserve’s next policy decision.
- Why
- The weaker hiring data affected expectations about future Federal Reserve interest-rate decisions and financial markets.
Key facts
- September job gains
- 29,000 non-farm payroll jobs
- Market expectation
- Approximately 90,000 jobs
- Unemployment rate
- 4.2%, up from 4.1% in August
- Revisions
- July and August job gains were revised down by a combined 60,000
- Dow futures
- Up about 439 points, or 0.85%
- Treasury yields
- The 10-year yield fell to around 5.18%; the two-year yield fell to about 4.72%
- Oil price
- Brent crude fell below $100 a barrel
Sources
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