US Jobs Shock: Only 29,000 Added in September, Unemployment Jumps to 4.2%

The U.S. labor market added only 29,000 jobs in September, a sharp deceleration from prior months, while the unemployment rate climbed to 4.2%, according to data released on Friday. The weak payrolls figure fell well short of economist expectations, signaling a potential slowdown in economic momentum.

The report underscores a cooling labor market, with job growth averaging well below the pace seen earlier in the year. The unemployment rate rose to 4.2%, up from the previous month, reflecting a softening in hiring. In reaction, Bitcoin held onto earlier gains, trading up more than 2% over the past 24 hours and just below $87,000, as market participants assessed the implications for Federal Reserve policy.

The disappointing jobs data could prompt the Federal Reserve to reconsider its interest rate trajectory, with investors now pricing in a higher probability of rate cuts. Global markets may see increased volatility as they digest the implications for economic growth. The next key indicator will be the upcoming inflation report, which could further shape monetary policy expectations.