U.S. Job Growth Moderates Amid Economic Challenges

In September, the U.S. economy likely experienced moderate job growth, with nonfarm payrolls expected to rise by 140,000 while the unemployment rate remained steady at 4.2%. Despite a slight decrease in announced job cuts to 72,821, this figure still represents a 53% increase year-over-year, with the technology sector leading in layoffs. Small businesses reported a decline in employment for the fifth consecutive month, although private sector jobs overall increased by 143,000, indicating a rebound in job creation. Hourly earnings showed growth, particularly in small businesses, with an increase to 3.01%. The Federal Reserve's recent policy easing aims to navigate these labor market challenges, emphasizing the need to avoid a significant downturn. Overall, while job growth remains positive, underlying trends suggest potential turbulence ahead, especially from the impacts of Hurricane Helene and ongoing strikes in key sectors.