Labor market slowed in September, final monthly jobs report before midterms shows

The U.S. labor market slowed during the month of September, according to new data Friday from the Bureau of Labor Statistics.

The economy added only 29,000 jobs, fewer than expected by economists. The unemployment rate rose to 4.2%.

Average hourly earnings for workers rose only 0.1% from the prior month and 3% from a year ago.

Additionally, 60,000 jobs were revised out of previous months. “The change in total nonfarm payroll employment for July was revised down by 31,000, from +21,000 to -10,000, and the change for August was revised down by 29,000, from +162,000 to +133,000,” the BLS said in a statement.

Overall, economists expected an addition of 84,000 jobs, an unchanged employment rate at 4.1% and earnings that increased by 3.1% from a year ago, according to a Dow Jones survey.

Friday’s data marks the last employment report before the midterm elections. For months, the Republican party and President Donald Trump have faced sagging poll numbers on the economy as trade wars rage on with close allies like Canada, the wars in Iran and Ukraine drag on and tariffs continue to roil the global economy.

On top of those issues, global bond yields have surged to levels not seen in decades. This week, the U.S. Treasury 10- and 30-year bond yields soared to their highest levels since 2002 and as a result the average 30-year fixed mortgage rate jumped as high as 7.6%.

That came alongside gas prices that remain almost 50% higher than late February, when the U.S. and Israel began the war against Iran, and as commercial diesel fuel prices sit 70% higher than earlier this year.

Still, hiring appears to have continued at a steady clip, although September’s overall hiring figure was lower than a surprisingly strong 162,000 additions in August.