The American job market grew this month, albeit far below forecasts. On Friday, the Bureau of Labor Statistics reported that employers added 29,000 jobs in September, well below predictions of an 84,000 gain.
The unemployment rate rose one-tenth of a point to 4.2 percent, while the labor market remained relatively stable. Labor force participation edged up two-tenths of a point to 61.8 percent, while the employment-to-population ratio rose slightly to 59.2 percent.
Private employers added 46,000 jobs, while government payrolls fell by 17,000. Health care added 17,000 jobs, while construction gained 11,000 and manufacturing added 9,000. Employment in financial activities fell by 7,000, while employment in information, professional and business services, leisure and hospitality, and other major industries changed little.
Revisions weakened the picture of the summer labor market. BLS marked down July by 31,000 jobs, turning its previously reported gain of 21,000 into a loss of 10,000, and cut August by 29,000, reducing its gain from 162,000 to 133,000. Together, those two months came in 60,000 lower than previously reported. Over the prior 12 months, payrolls had averaged monthly gains of 45,000.
Paychecks continued to grow, but slowly. Average hourly earnings rose 5 cents in September, or 0.1 percent, to $37.81, bringing the 12-month increase down to 3.0 percent.
The number of long-term unemployed, those out of work 27 weeks or longer, stood at 1.9 million, or 27.1 percent of all unemployed people. Those jobless for less than five weeks were not specifically reported in the summary release. The number of people working part time for economic reasons remained little changed at 4.5 million.
The report comes after the Federal Reserve raised its benchmark interest rate by a quarter percentage point in September, bringing the target range to 3.75 percent to 4 percent. The Federal Open Market Committee voted unanimously on Sept. 16 to raise rates, citing elevated inflation and saying the move would support a return toward its 2 percent inflation goal. Its next meeting is scheduled for Oct. 27-28.
The October employment report is due in early November.