U.S. Adds Just 29,000 Jobs in September as Unemployment Rate Hits 4.2%

Bitcoin held onto its earlier gains after the latest U.S. employment report, trading just below $87,000 and up more than 2% over the past 24 hours.

The September data pointed to a weakening U.S. labor market, potentially giving the Federal Reserve more flexibility on interest rates while inflation remains elevated.

The U.S. economy added just 29,000 jobs in September, according to the government’s Nonfarm Payrolls Report released Friday. The figure fell well short of the 90,000 consensus estimate and marked a sharp slowdown from August’s 133,000 increase. August’s figure was revised down from the previously reported 162,000 jobs.

The unemployment rate also moved higher, reaching 4.2% compared with expectations of 4.1% and August’s 4.1% reading.

Revisions to earlier data further highlighted the weaker employment picture. July’s reported 21,000 job increase was revised into a loss of 10,000 jobs.

Bitcoin was already trading higher before the report and remained near $87,000 in the minutes after its release. U.S. equity futures also extended their gains, with Nasdaq futures up 1.2%.

Treasury yields moved sharply lower following the data. The 10-year yield declined 7 basis points to 5.17%, while the two-year yield fell by the same amount to 4.71%. Gold climbed more than 1%, while the U.S. dollar weakened against major currencies.

Wage growth also came in below expectations. Average hourly earnings increased just 0.1% in September, compared with forecasts for a 0.3% rise and August’s 0.3% gain.

On an annual basis, average hourly earnings increased 3%, below the 3.2% forecast and August’s revised 3.1% reading.