Subdued US job growth expected in advance of Fed meeting
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Economists project that in the US, 50,000 jobs were added in September, based on the median of a Bloomberg survey.
PHOTO: AFP
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WASHINGTON – US job growth probably lumbered along in September as the unemployment rate held at an almost four-year high, extending a sluggish period for the labour market.
Economists project 50,000 jobs were added, based on the median of a Bloomberg survey. That would be in line with the average from the past three months. The jobless rate is seen steady at 4.3 per cent.
The report’s release on Sept 26 is at risk if lawmakers are unable to agree on a funding Bill by the end of the fiscal year on Sept 30, and the US government shuts down. A closure would see federal economic reports suspended.
Barring a shutdown, the report from the US Bureau of Labour Statistics will offer US Federal Reserve policymakers an update on whether employers’ appetite for labour is enough to keep the unemployment rate from rising further.
Officials cut interest rates in September for the first time in 2025 on concerns about fragility in the job market, and investors are placing bigger bets on the US Fed lowering borrowing costs again at a two-day meeting that concludes on Oct 29.
US Fed officials Philip Jefferson, Susan Collins, Austan Goolsbee, Lorie Logan and John Williams are among the speakers in the coming week.
Labour demand has gradually diminished as companies search for ways to offset other costs, including higher import duties. A separate government report on Sept 30 is projected to show August US job openings were at one of the lowest levels since 2021.
Other data in the coming week include the Institute for Supply Management’s September surveys of manufacturers and service providers.
Meanwhile, investors are watching for last-minute moves ahead of the potential Oct 1 federal shutdown, and for the impacts that a government closure would trigger. The top four congressional leaders will meet with US President Donald Trump at the White House on Sept 29, according to two people familiar with the matter. BLOOMBERG
