U.S. jobs growth stalls at 29,000 in September as unemployment rises to 4.2%

Weak September jobs report sends Bitcoin and markets higher

The U.S. labor market showed signs of cooling in September, with only 29,000 jobs added. That figure came in well below the 90,000 jobs economists were expecting, according to the government's Nonfarm Payrolls Report released Friday.

The unemployment rate also rose unexpectedly to 4.2%, up from 4.1% in August and above the forecast of 4.1%. The report also included significant downward revisions to prior months: August's gain was trimmed from 162,000 to 133,000, and July's previously reported 21,000-job gain was revised to a loss of 10,000.

The data suggests the Federal Reserve may have room to hold interest rates steady even though inflation remains elevated.

Key numbers from the report

• September jobs added: 29,000 (forecast: 90,000)
• Unemployment rate: 4.2% (forecast: 4.1%)
• August jobs gain revised down to 133,000 from 162,000
• July revised from +21,000 to -10,000
• Average hourly earnings rose just 0.1% (forecast: 0.3%)
• Year-over-year earnings growth: 3% (forecast: 3.2%)

Bitcoin and markets react

Bitcoin, a decentralized digital currency traded 24/7 on blockchain networks, continued gains following the report and held just under $87,000. It was up more than 2% over the previous 24 hours, having already risen earlier in the session.

U.S. stock index futures also moved higher, with the Nasdaq gaining 1.2%. Treasury yields dropped, with the 10-year yield falling 7 basis points to 5.17% and the 2-year yield slipping by a similar margin to 4.71%. Gold rose more than 1%, and the U.S. dollar weakened against major currencies.

What is confirmed

The jobs report data, including the 29,000 figure, the unemployment rate of 4.2%, and the downward revisions to August and July, are confirmed facts from the official government report. Market movements in Bitcoin, stocks, bonds, and gold following the release were also reported.

Why this matters for crypto investors

Bitcoin and other crypto assets often move in response to U.S. macroeconomic data. A weaker jobs report can signal that the Federal Reserve may keep interest rates lower for longer, which some investors view as supportive for risk assets like Bitcoin. The immediate market reaction showed Bitcoin and stocks both rising after the report.

Sources

• CoinDesk