The U.S. economy added 29,000 jobs in September, falling short of projections set by economists. According to data released by the Bureau of Labor Statistics (BLS), the unemployment rate edged up to 4.2 percent.
BLS also reported adjustments to prior months: the July figures were revised to show a loss of 10,000 jobs, while August revealed a gain of 133,000 jobs, previously reported as 162,000 jobs in August following July’s addition of 21,000 jobs.
Jerry Tempelman, vice president of economic and fixed income research at Mutual of America Capital Management, commented on the report. He indicated that the data raises concerns about the labor market’s resilience following a recent interest rate increase by the Federal Reserve. Last month, the Fed raised rates by a quarter point, the first rise in over three years, due to inflation worries.
Tempelman noted that the rise in unemployment deserves attention because increased joblessness combined with weaker hiring might suggest that the Fed’s rate-tightening cycle could impact economic activity more significantly than expected.
Since August 2021, the unemployment rate has stayed below 5 percent. It previously surged to 14.8 percent during the initial phase of the COVID-19 pandemic, marking the highest point since the Great Depression.
Additionally, inflation has exceeded the Federal Reserve’s 2 percent target for over five years, driven upwards recently by energy shocks linked to the Iran conflict.
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