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US Jobs Report Falls Short of Expectations in September

7:03 AM ETConfirmed

Business Desk

In Short: The unemployment rate increased to 4.2% from 4.1%, surpassing economists' expectations of 4.1%, as reported by Fox Business.

The Bureau of Labor Statistics reported that American employers added 29,000 jobs in September, a figure well below the anticipated 90,000 positions, according to CoinGape and Fox Business.

Healthcare, construction, and manufacturing sectors saw modest gains, with healthcare adding 17,000 positions, construction 11,000, and manufacturing 9,000 jobs.

Private payrolls grew by 46,000 jobs, below the estimated 85,000, while August's gain of 127,000 was revised down to 89,000.

Government payrolls contracted by 17,000 jobs, with federal, state, and local government employment all experiencing declines.

Average hourly earnings increased by 0.1% in September, bringing annual wage growth to 3.0%, according to CoinGape.

The weak jobs data and inflation reading have crashed expectations of a rate hike in the Federal Reserve's October meeting to 23.8%, down from above 70% a few days earlier, according to the CME FedWatch Tool.

Ethereum briefly rose to $2,770 on Friday, its highest level in over a week, before easing down following the weak US jobs report.

Despite declining rate-hike expectations, US 10-year note yields have remained strong, indicating continued upward pressure on long-term yields.

Corporate earnings showed mixed results, with Oracle beating expectations on AI cloud growth, whereas Adobe slipped despite solid quarterly figures.

The Producer Price Index for August rose 0.4% month-over-month, in line with market expectations, and the year-over-year gain accelerated from 4.8% to 5.4%.

Vanguard senior economist Adam Schickling noted that the labor market remains resilient but is not accelerating, with hiring subdued and layoffs remarkably low.

Phil Camporeale, chief investment strategist at JPMorgan Wealth Management, said the combination of lower-than-expected jobs created, negative revisions to prior data, and weaker wage growth are further evidence that the labor market is not a source of inflationary pressure.

What this adds

Background

What's confirmed

• The Bureau of Labor Statistics reported that American employers added 29,000 jobs in September, a figure well below the anticipated 90,000 positions, according to CoinGape and Fox Business.
• Healthcare, construction, and manufacturing sectors saw modest gains, with healthcare adding 17,000 positions, construction 11,000, and manufacturing 9,000 jobs.
• Private payrolls grew by 46,000 jobs, below the estimated 85,000, while August's gain of 127,000 was revised down to 89,000.
• Government payrolls contracted by 17,000 jobs, with federal, state, and local government employment all experiencing declines.
• Average hourly earnings increased by 0.1% in September, bringing annual wage growth to 3.0%, according to CoinGape.
• The weak jobs data and inflation reading have crashed expectations of a rate hike in the Federal Reserve's October meeting to 23.8%, down from above 70% a few days earlier, according to the CME FedWatch Tool.
• Ethereum briefly rose to $2,770 on Friday, its highest level in over a week, before easing down following the weak US jobs report.
• Despite declining rate-hike expectations, US 10-year note yields have remained strong, indicating continued upward pressure on long-term yields.
• Corporate earnings showed mixed results, with Oracle beating expectations on AI cloud growth, whereas Adobe slipped despite solid quarterly figures.
• The Producer Price Index for August rose 0.4% month-over-month, in line with market expectations, and the year-over-year gain accelerated from 4.8% to 5.4%.
• Vanguard senior economist Adam Schickling noted that the labor market remains resilient but is not accelerating, with hiring subdued and layoffs remarkably low.
• Phil Camporeale, chief investment strategist at JPMorgan Wealth Management, said the combination of lower-than-expected jobs created, negative revisions to prior data, and weaker wage growth are further evidence that the labor market is not a source of inflationary pressure.

What's still developing

• The unemployment rate ticked higher to 4.2%, which was above economists' expectations of 4.1%, according to the LSEG poll.
• These individuals would've preferred full-time employment but were working part-time because their hours had been reduced, or they were unable to find full-time jobs.
• That figure was below the 90,000 estimate of economists polled by LSEG.
• Oracle ( ORCL ) reported a 30% year-over-year increase in first-quarter revenue to $19.3 billion, topping market expectations of $19.14 billion; adjusted EPS came in at $1.92, above the expected $1.74.
• TradingKey - On September 10 Eastern Time, the three major US stock indices fell for the fourth consecutive trading day.
• Darcy will most ardently return to screens on Netflix in a new limited series adaptation of “ Pride and Prejudice.” Netflix has announced that the limited series adaptation of the iconic novel will debut on Dec.
• Netflix has also unveiled first look photos, which can be seen below.
• Popular on Variety Trina Vega returns to the hallowed halls of Hollywood Arts in Netflix’s “Victorious” Reboot “Hollywood Arts” on Oct.

Sources

• CoinGapelink
• Fox Businesslink
• Fxstreetlink
• WIREDlink
• Tradingkeylink
• Varietylink
• Financelink
• Gadgetsandwearableslink
• Tradingpedialink
• Tekedialink
• Roanokelink
• Warpbeatlink
• Morningstarlink
• Economictimeslink
• WarpBeat — background on Private Sector Adds 90,000 Jobs in September, Exceeding Expectations link
• WarpBeat — background on Eurozone Business Climate Below Expectations in September link