US employers added only 29,000 positions, a steep decline from August’s revised 133,000, and earlier revisions had already trimmed the July‑August total by 60,000 jobs, underscoring a persistent slowdown.
Federal, state and local agencies cut 17,000 posts, while professional‑service firms trimmed 9,000. Healthcare firms added 17,000, well below their 33,000‑per‑month average, and construction posted 11,000, manufacturing 9,000.
Initial claims for unemployment benefits fell to 197,000 last week, the lowest since mid‑July, and the four‑week average dipped to 200,000. Planned layoffs slipped 18% to 43,281, and announced cuts were down 20% from a year ago.
The weaker hiring numbers spotlight the Federal Reserve’s dual mandate of maximum employment. Fed officials have repeatedly said inflation remains their priority, but a sluggish labor market may pressure them to keep rates steady at the October 3 meeting.
Glassdoor’s employee confidence index hit its lowest level since records began, and the Conference Board’s consumer confidence fell to a decade‑low. Chief economist Daniel Zhao warned that workers feel stuck, fearing layoffs and new technology.
The report arrives just before the November 3 midterm election, when voters will decide whether Trump’s Republicans retain Congress. S&P 500 futures gained 0.3%, while the 10‑year Treasury yield fell to 5.17%.