US hiring drops to 29,000 jobs, testing the boom message before midterms

American employers added just 29,000 jobs in September, a sharp slowdown that leaves President Donald Trump defending his economic record with a month to go before the midterm congressional elections. The final jobs update before the vote showed unemployment edging higher, offering a different picture from the president’s repeated description of an economy in full swing, according to BBC Business (direct).

Figures from the Bureau of Labor Statistics, the US agency that reports employment data, showed job gains falling from a revised 133,000 in August. The unemployment rate increased from 4.1% to 4.2%. Hiring was subdued across major parts of the economy, with staffing levels barely changing in sectors including technology and retail. Together, the figures point to employers becoming more cautious about adding workers rather than sustaining August’s pace.

A weak month, but not a collapse

Economists quoted by BBC Business cautioned against treating the September result as proof of a lasting downturn in employment. George Brown, senior economist at Schroders, said hiring had swung sharply during the year and that one weak report was unlikely to establish a pattern of prolonged deterioration. His assessment leaves an important distinction: the latest month was soft, but it does not by itself show that the jobs market is entering a sustained collapse.

Bradley Saunders, North America economist at Capital Economics, also judged the result less alarming than the headline number might suggest. He said the slowdown was not disastrous, pointing to fewer government jobs and changes in temporary visa policy as factors holding back overall employment growth. Those influences matter when interpreting a report whose headline figure combines changes across different parts of the labour market.

Jeffery Roach, chief economist at LPL Financial, highlighted another divide. He described tension between goods-producing businesses supporting the artificial intelligence boom and service industries experiencing changes brought about by that technology. For the Federal Reserve, the US central bank, he said the broader weakness reduced the likelihood of two further increases in interest rates, which influence borrowing costs.

“Given the overall softness of the labour market, the likelihood of two Fed hikes is going lower,” Roach said.

An election message under pressure

The report creates a political challenge for Trump and fellow Republicans as they campaign for congressional seats. The president has portrayed the United States as the world’s hottest economy, but the employment figures show a cooling labour market. That contrast comes as voters already express dissatisfaction with his handling of both the economy and everyday living costs.

An AP/NORC poll released on Thursday put approval of Trump’s handling of cost-of-living issues at 17%, compared with 26% for his economic management overall. Both readings were new lows for Trump and below Joe Biden’s lowest levels during his presidency. Trump appeared to acknowledge the communication problem at a White House event earlier in the week, saying he had done a poor job explaining the country’s performance.

The next test is whether September proves to be another weak point in an uneven hiring year or a sign of more persistent softness. That distinction will matter for the interest-rate outlook. In the meantime, Republicans face the more immediate task of defending their economic message before voters head to the midterms.