US September Nonfarm Payrolls Increase by 29,000; Unemployment Rate Rises to 4.2%

US job growth in September was lower than expected, and the unemployment rate rose slightly, indicating that employers are cautious about hiring as costs increase. Data released by the US Bureau of Labor Statistics on Friday showed that, following downward revisions to the previous two months, non-farm payrolls increased by 29,000 last month. This figure is below the estimates made by economists surveyed by institutions. The unemployment rate rose to 4.2%, partly reflecting the expansion of the labor force. The slowdown in job growth was mainly driven by declines in employment in government, information, professional and business services, and financial activities. Employment in healthcare, construction, and manufacturing increased. Robust consumer spending and strong business investment have supported hiring, but many cost-conscious employers are reluctant to expand their workforce. However, layoffs remain at a low level. With the unemployment rate still near historic lows, Federal Reserve officials can continue to focus on inflation when considering the timing of the next interest rate hike.