New Jobs Report Shows Slower Than Expected Growth

The U.S. Department of Labor released the September jobs report showing much slower growth than expected. Highlights of the report include:

• Nonfarm payrolls rose by just 194,000 in the month, compared to the Dow Jones estimate of 500,000. The slower pace of growth is attributed to a decline in government jobs.
• The U.S. unemployment rate fell by 0.4% to 4.8%, the lowest since February 2020.
• Despite the weak jobs total, wages increased sharply by a monthly gain of 0.6% and a year-over-year increase to 4.6%.
• Leisure and hospitality led job creation, adding 74,000 positions. Professional and business services contributed 60,000 while retail increased by 56,000.