The U.S. economy added 29,000 jobs in September, far below the consensus forecast of 90,000, according to the government’s Nonfarm Payrolls Report. August payroll growth was also revised lower to 133,000 from the initially reported 162,000.
The unemployment rate unexpectedly rose to 4.2%, compared with expectations for 4.1% and the same 4.1% reading in August. July’s previously reported gain of 21,000 jobs was also revised to a loss of 10,000 jobs.
Wage growth was soft as well. Average hourly earnings rose only 0.1% month-on-month, missing forecasts for 0.3% and slowing from August’s 0.3%. On an annual basis, earnings increased 3%, below the 3.2% forecast and August’s 3.1% pace.
The weak labor report may give the Federal Reserve more room to keep interest rates on hold even as inflation remains elevated. U.S. stock index futures extended gains after the release, with the Nasdaq up 1.2%.
Bitcoin held a gain of more than 2% on the day after the data and traded around $86,600, just below $87,000. The 10-year U.S. Treasury yield fell 7 basis points to 5.17%, while the 2-year yield dropped to 4.71%. Gold rose more than 1%, and the dollar weakened against major currencies.
