U.S. adds 29,000 jobs in September; unemployment rises to 4.2%

U.S. labor market momentum is slowing: September payroll growth missed consensus by 65–75%, prior-month revisions reduced half a year of gains, and unemployment edged upward for the first time in three months. These metrics affect Federal Reserve policy timing (markets now price 85% odds of a rate hold), consumer spending capacity, and real household income via wage growth (now at slowest pace since May 2021). Concentrated sector weakness—financial services down 129,000 since May 2025, government payrolls falling—suggests uneven demand. Timing: one month before midterm elections.