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September jobs report: U.S. adds 29,000 jobs, unemployment 4.2%

financeOct 2, 2026452,463

The U.S. added just 29,000 jobs in September and the unemployment rate rose to 4.2 percent, the Bureau of Labor Statistics reported. The August payrolls count was revised down to a gain of 133,000. Benchmark Treasury yields tumbled after the soft print, with the 10-year yield falling to 5.214 percent, the 30-year to 5.57 percent, and the 2-year holding at 4.789 percent. Traders priced an 84 percent chance that the Federal Reserve will hold rates steady at its October meeting, according to the CME Group FedWatch tool. Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, said the report argues against the labor market retightening and left one follow-up hike in December as the firm’s base case. The weak report reduces near-term pressure for an October Fed rate increase and reshaped market expectations ahead of upcoming inflation data.

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