US Economy Adds Just 29,000 Jobs in September as Hiring Slows

US employers added just 29,000 jobs in September, less than half the number economists expected and a sharp drop from August's gains, according to the US Bureau of Labor Statistics.

The figure came in far below the consensus forecast of just under 70,000 new jobs. It marks the weakest payroll performance in months and lands at a politically charged moment: this is the final jobs report before the midterm elections.

The unemployment rate rose slightly to 4.2%, the BLS data shows. The combination of stalled hiring and a rising jobless rate points to a cooling labor market.

Job gains were narrowly concentrated. Healthcare accounted for 17,000 of the 29,000 new positions, meaning the rest of the economy produced only 12,000 jobs combined. The information, financial and professional services industries all posted losses, according to the Bureau of Labor Statistics.

The report carries weight well beyond the payroll numbers themselves. As the last official labor-market snapshot voters will see before casting ballots in the midterms, it gives both parties fresh ammunition on the state of the economy.

For the Federal Reserve, the data adds to the case that the labor market is softening. Policymakers have been watching employment indicators closely as they weigh the pace of future rate decisions. A sub-30,000 print, paired with an unemployment rate drifting up to 4.2%, suggests employers are holding back on hiring even if they are not yet cutting staff at scale.

The sector breakdown reinforces that picture. Losses in information, finance and professional services — industries often seen as bellwethers for white-collar demand — signal caution among businesses that typically expand first when confidence returns.

Healthcare remains the exception. Its 17,000 new jobs represent the bulk of the month's growth, continuing the industry's role as the economy's most reliable jobs engine even as other sectors contract.

The miss against expectations was steep. Economists surveyed ahead of the release had anticipated just under 70,000 new jobs; the actual print fell short of that benchmark by more than half.

Markets and campaign strategists alike will now parse the internals of the report in the weeks before Election Day. A labor market that adds fewer than 30,000 jobs a month is running well below the pace needed to keep up with population growth, a dynamic that, if it persists, could push the unemployment rate higher in the months ahead.