US job growth slows as unemployment rises before midterm elections

What the report says

US job growth slowed sharply in September, the Labor Department reported, as the economy added 29,000 jobs and the unemployment rate rose to 4.2 percent from 4.1 percent. Al Jazeera said the figures were the final monthly jobs report before the upcoming US midterm elections and fell well below economist forecasts.

The report showed most of the hiring came from healthcare, which added 17,000 jobs. Construction added 11,000 and manufacturing 9,000, while financial activities lost 7,000 jobs. Other sectors were described as largely unchanged. The article also noted downward revisions to earlier months, including a July figure that shifted from a small gain to a loss and an August total revised lower.

Al Jazeera reported that wage growth slowed to 3 percent, the weakest annual pace in five years, adding to signs of a cooling labor market. Economists quoted in the story said the data suggested a low-hire, low-fire environment, where employers are avoiding both expansion and large-scale layoffs. The piece linked the weaker jobs picture to broader concerns about the US economy ahead of the November election and before the Federal Reserve’s next policy meeting later in October.

The article also said financial markets reacted positively, with major US indexes higher and gold rising. As background, a softer labor market can influence consumer confidence, Fed interest-rate decisions and the political debate over economic conditions, but the specific policy response remains undecided.