Employers throughout the United States added 29,000 jobs in September, falling short of economic forecasts and indicating that certain companies are delaying hiring decisions due to ongoing pressures like climbing energy costs and elevated inflation. FactSet economists had previously projected that the economy would generate 90,000 new positions during the month. Meanwhile, the unemployment rate ticked up slightly to 4.2% in September, compared to 4.1% in the previous month. Despite the softer job growth, recent figures indicate the broader labor market has improved since last year, when employers averaged a modest 10,000 new jobs added each month. Analysts are also monitoring other key indicators of labor market health, including wage growth, which has continued to trail inflation for five consecutive months. In addition, a report released Thursday by the outplacement firm Challenger, Gray & Christmas revealed that job cuts have decreased significantly throughout 2026. Layoffs spanning through September have fallen by 40% compared to the identical timeframe from the previous year. On a month-over-month basis, layoffs dropped 20% relative to September 2025, reaching their lowest point in four years. Economists note that a stable labor market provides the Federal Reserve with greater flexibility to pursue interest rate increases in the months ahead. The central bank remains dedicated to steering inflation back down toward its yearly 2% objective, having raised its benchmark interest rate last month for the first time in over three years. Consumer prices rose at an annual rate of 3.4% in August, largely driven higher by soaring energy expenses.
Source: cbsnews.com
