US Adds 29,000 Jobs as Unemployment Rises to 4.2%

The U.S. economy added 29,000 jobs in September, the Labor Department reported Friday, well below the 90,000 expected by economists in a Reuters poll. The unemployment rate rose to 4.2% from 4.1% in August, and revisions reduced the combined July and August payroll totals by 60,000, adding to signs of a cooling labor market. The report showed August job growth at 133,000, down from an earlier estimate of 162,000. July was revised to a loss of 10,000 jobs, rather than the previously reported gain of 21,000. The department’s figures also showed that healthcare added 17,000 jobs, below its average monthly increase of 33,000 over the past year. Construction gained 11,000 jobs and manufacturing added 9,000, while financial activities employment fell by 7,000. The increase in unemployment came as more people entered the labor force, according to the report. Economists cited seasonal-adjustment volatility as a possible factor behind September’s weak payroll gain and the downward revision to August. The available figures do not establish how much the revisions reflect that volatility or a change in underlying labor-market conditions.