U.S. employers added a disappointing 29,000 jobs in September, and the unemployment rate ticked up to 4.2%, according to government figures released Friday. Hiring declined from a revised 133,000 jobs added in August, falling short of economists' expectations of 90,000 for the month.
Revisions to previous months' data also reduced combined July and August payrolls by 60,000 jobs. Average hourly wages saw their smallest year-over-year gain since May 2021, rising just 3% from the previous year.
Economic Concerns and Consumer Confidence
The latest jobs report is the final economic data to be released before the upcoming midterm elections. It arrives amidst widespread discontent over the high cost of living and the general state of the economy. A recent poll indicated that only 17% of U.S. adults approve of President Trump’s handling of the cost of living, with just 26% approving of his overall economic management.
Consumer confidence has also seen a significant drop. An index published by the Conference Board revealed that consumer confidence fell to its lowest level in over a decade this month. More than 28% of respondents anticipate fewer job opportunities in the next six months, a stark increase from the 14% who expect more.
Similarly, Glassdoor's employee confidence index, which measures workers' perceptions of their own companies' prospects, reached its lowest point since the beginning of 2016. Daniel Zhao, Glassdoor's chief economist, attributed the decline to growing worker anxiety about factors including layoffs and artificial intelligence.
A "Low-Hire, Low-Fire" Labor Market
Economists characterize the current labor market as a "low-hire, low-fire" environment. While employers are not extensively laying off workers, they are also not hiring at a robust pace. Data from the Labor Department shows that gross hiring has remained stagnant for over two years. This situation leads to job security for those employed, but presents challenges for job seekers.
In August, the average duration of unemployment exceeded six months, the longest stretch recorded since February 2022. This prolonged job search period contributes to a sense of unease among workers. Zhao noted that the high cost of being laid off, coupled with friends' difficulties in finding new employment, makes job loss a more significant concern.
The reluctance to quit is also a feature of this market. Zhao explained that workers often feel "stuck" as they struggle to find better opportunities in the open market that offer improved pay or work-life balance.