US jobs market sees sharp slowdown ahead of midterm elections

The US jobs market saw a sharp slowdown in September, with employers adding just 29,000 jobs in the final update before the midterm elections.

Headcounts were little changed in major sectors from tech to retail as hiring fell significantly from August, according to figures from the Bureau of Labor Statistics (BLS).

Meanwhile, the unemployment rate rose slightly from 4.1% in August to 4.2% in September.

The figures signal a cooling US economy, which experts said reduced the likelihood of a series of further interest rate hikes by the Federal Reserve.

The 29,000 jobs created in September was down from a figure of 133,000 in August, according to revised BLS figures for the month.

But George Brown, senior economist at Schroders, said while job gains have been a “rollercoaster“ this year, a single soft report is unlikely to point to a lasting collapse.

And Bradley Saunders, North America economist at Capital Economics, said the lower figure was “not disastrous“, adding that a drop in government roles and temporary visa policy changes weighed on overall growth.

Jeffery Roach, chief economist at LPL Financial, added that the data showed tension between “goods producing sectors that support the AI boom” and service industries feeling the effect of changes brought about by the tech.