U.S. nonfarm payroll growth in September fell well short of market expectations, while the unemployment rate was also higher than expected.
According to the U.S. Bureau of Labor Statistics (BLS), nonfarm employment increased by 29,000 from the previous month in September. This was well below the market expectation of an increase of 89,000.
The unemployment rate was 4.2%, exceeding the market expectation of 4.1%. Nonfarm payrolls are a key U.S. labor market indicator that tracks employment changes in the private and government sectors.
Nonfarm payrolls and the unemployment rate are major economic indicators considered by the U.S. Federal Reserve (Fed) when determining monetary policy. Slower job growth and a higher unemployment rate can generally help reduce concerns about an overheated economy.