WS #15238
The US labor market has exhibited significant weakness in September, with Nonfarm Payrolls adding only 29,000 jobs against an expected 89,000, while the unemployment rate edged up to 4.2%. Average hourly earnings grew by just 0.1% month-over-month, well below the 0.3% forecast, and prior months were revised down. This broad-based softness suggests the Federal Reserve is highly unlikely to hike rates in October, pivoting the macro narrative toward easing expectations and pressuring rate-sensitive sectors like high-multiple tech and real estate.
US Labor Market Shock
The US labor market has exhibited significant weakness in September, with Nonfarm Payrolls adding only 29,000 jobs against an expected 89,000, while the unemployment rate edged up to 4.2%. Average hourly earnings grew by just 0.1% month-over-month, well below the 0.3% forecast, and prior months were revised down. This broad-based softness suggests the Federal Reserve is highly unlikely to hike rates in October, pivoting the macro narrative toward easing expectations and pressuring rate-sensitive sectors like high-multiple tech and real estate.