US payrolls slowed sharply in September as employers added just 29,000 positions and the unemployment rate ticked up to 4.2%. The figures are the final monthly employment snapshot released ahead of the midterm elections and were published by US Bureau of Labor Statistics.
The headline gain was markedly below the consensus forecast of just under 70,000 new jobs, and less than half of that estimate. Compared with the stronger reading reported for August, September’s payrolls number represents a clear slowdown in hiring activity. Economists and analysts alike are likely to point to the gap between expectations and the outcome as an indication of cooling conditions in the labor market.
Sector-level data showed most of the month’s advance concentrated in healthcare, which added 17,000 positions. Employment in the information, financial and professional services sectors declined in September, offsetting gains elsewhere. The report did not indicate a single dominant source of hiring beyond healthcare, and the modest net increase suggests firms added workers at a reduced pace overall.
This release will be examined by policymakers, investors and political actors in the coming days, as it is the last comprehensive jobs report before voters go to the polls. Beyond its immediate electoral relevance, the data provide fresh evidence on hiring momentum and unemployment trends that will feed into broader assessments of the economy and future policy discussions.