US Job Growth Remains Tepid With 4.3% Unemployment in September

US job growth remained sluggish in September 2025, with approximately 50,000 jobs added, keeping the unemployment rate steady at 4.3%, near its highest level since 2021. Economists attribute the weak labor market to factors including President Trump's tariffs and immigration policies, which have contributed to stagflation by stalling employment growth and increasing inflation. Businesses face challenges from rising import duties and policy uncertainty, leading to reduced hiring, cost-cutting, and cautious price increases. The Federal Reserve responded with its first rate cut of 2025 to address job market strain, with another potential cut expected in October. Meanwhile, US lawmakers face pressure to pass a spending bill to prevent a federal government shutdown, which could delay economic reports and impact market stability. Investors are also monitoring global economic developments, including central bank actions in Canada, India, and Japan, as well as inflation data from the euro area and Switzerland.