US Job Growth Slows Sharply in September as Unemployment Rises to 4.2%

US job growth slowed sharply in September, with 29,000 jobs added as the unemployment rate rose to 4.2%.

The jobs gain fell well short of expectations for 90,000, pointing to a weaker pace of hiring than anticipated.

The slowdown came even as layoffs remained limited. That contrast suggests employers were holding on to existing staff while taking a more cautious approach to adding workers.

Domestic demand also remained strong, providing a counterweight to the softer hiring figures. The combination presents a mixed picture of an economy where demand has held up but job creation has lost momentum.