The US labour market recorded a sharp slowdown in September, with employers adding only 29,000 jobs in the latest figures ahead of the country’s midterm elections.
Employment levels remained largely unchanged across major sectors, including technology and retail, as hiring declined significantly from August, according to data from the Bureau of Labor Statistics (BLS).
The unemployment rate also edged up from 4.1% in August to 4.2% in September, pointing to signs of cooling in the US economy.
The weaker employment figures could reduce expectations of further interest rate hikes by the Federal Reserve, as policymakers assess the state of the labour market and broader economic conditions.
The 29,000 jobs added in September marked a significant decline from the revised 133,000 jobs recorded in August.
However, George Brown, senior economist at Schroders, said that while job gains have been a “rollercoaster“ this year, one weak report alone does not necessarily indicate a prolonged economic downturn.
Bradley Saunders, North America economist at Capital Economics, also described the figure as “not disastrous“, noting that a decline in government employment and changes to temporary visa policies contributed to the weaker overall growth.
The latest BLS figures contrast with President Donald Trump’s repeated claims that the US economy is performing strongly and is the “hottest” nation in the world.
The employment data could create additional political challenges as Trump and fellow Republicans prepare for the midterm congressional elections, with economic conditions expected to remain an important issue for voters.
An AP/NORC poll released on Thursday found that only 17% of Americans approved of the president’s handling of cost-of-living issues, while 26% approved of his handling of the economy overall.
Both figures represented new lows for Trump and were lower than the lowest approval ratings recorded for Democrat Joe Biden during his presidency.
Trump has acknowledged that his view of the economy may not align with how many Americans perceive current conditions.
“I’ve done a very bad job of explaining how good the country is doing,” he said at a White House event earlier this week.
