US jobs market sees sharp slowdown ahead of midterms
US employers added just 29,000 jobs in September as unemployment ticked up to 4.2%, signaling a cooling economy before the midterms.
Stock photo for illustration only, not from the actual event
- US jobs market added only 29,000 positions in September
- Unemployment rate edged up slightly from 4.1% to 4.2%
- August job creation figures were revised down to 133,000
- Presidential approval ratings on the economy hit new lows
The United States labor market suffered a sharp slowdown in September, with employers adding a meager 29,000 jobs in the final update before the upcoming congressional midterm elections. The figures were released by the Bureau of Labor Statistics (BLS).
Headcounts remained virtually unchanged across major sectors ranging from technology to retail, as American firms opted to hold steady rather than hire or fire staff. This resulted in a significant drop in hiring compared to August, while the national unemployment rate ticked up slightly from 4.1% in August to 4.2% in September.
Stock photo for illustration only, not from the actual event
These figures point to a cooling American economy, which experts indicate has diminished the likelihood of further consecutive interest rate hikes by the Federal Reserve. The 29,000 jobs created in September dropped significantly from revised BLS figures of 133,000 for August.
"Given the overall softness of the labour market, the likelihood of two Fed hikes is going lower."
Jeffery Roach, chief economist at LPL Financial
George Brown, senior economist at Schroders, noted that while job gains have resembled a rollercoaster this year, a single soft report is unlikely to signal a lasting collapse. Meanwhile, Bradley Saunders, North America economist at Capital Economics, described the lower figure as not disastrous, adding that a drop in government roles and temporary visa policy changes weighed on overall growth.
A sudden labor market deceleration right before midterm elections typically increases political pressure on the incumbent administration, as voters closely tie household cost-of-living concerns to political performance. From a monetary policy standpoint, weaker job creation forces the central bank to weigh whether further policy tightening risks tipping the broader economy into a deeper slowdown.
This economic disconnect presents major hurdles as the president and fellow Republicans hit the campaign trail with just one month remaining until the midterm congressional elections. According to an AP/NORC poll released on Thursday, only 17% of Americans approve of the president's handling of cost-of-living issues, while 26% approve of his handling of the overall economy, marking new lows.
Source: BBC Business
Found something wrong in this article? Report an issue with this article
Comments
Leave a Comment