U.S. nonfarm payrolls collapse to 29,000 in September; jobless rate climbs to 4.2%

The United States added just 29,000 nonfarm payrolls in September, falling far short of the 90,000 forecast and marking a sharp deceleration from the revised 133,000 in August. The unemployment rate ticked up to 4.2% from 4.1%, while wage growth slowed to 0.1% month-over-month versus expectations of 0.3%.

The weaker-than-expected employment report sparked a rally in short-term interest-rate futures as traders dramatically reduced bets on a Federal Reserve rate hike in October. The U.S. Dollar Index reached its highest level since April 2025 in the immediate aftermath. #economy #employment #fedpolicy