Employers added a mere 29,000 jobs in September, a figure well below what analysts had expected, while the jobless rate unexpectedly climbed to 4.2%, according to the government’s Nonfarm Payrolls Report released Friday morning. The report also indicated that wage growth was losing momentum.
The digital currency kept earlier gains intact following the report, rising by more than 2% across the past 24 hours while remaining just below the level of $87,000.
The Jobs Number
The Labor Department reported that the U.S. economy added 29,000 jobs in September, a figure that came in below the consensus forecast of 90,000. The number also lagged behind August’s revised gain of 133,000, which had initially been reported at 162,000.
Unemployment climbed to 4.2%, above what had been expected at 4.1%, up from the August reading of 4.1%.
Revisions Drag Down the Picture
Previous months saw some revisions in the report, with July’s 21,000 jobs gain being adjusted down to a jobs loss of 10,000.
Recent figures show a weaker September reading than expected, alongside downward adjustments to earlier estimates. Together, these point to a U.S. job market that appears to be losing momentum more quickly than recent reports had indicated.
Bitcoin Holds Its Gains
Bitcoin continued about 2% higher for the day at $86,600 in the minutes following the release. Already higher on the session, the price moved just under $87,000.
Futures tied to U.S. stock indexes were building on their gains, with the Nasdaq up 1.2%.
Bonds and Currencies React
Both the 10-year and the 2-year Treasury yields declined, with the shorter-dated note slipping by 7 basis points to 5.17% and its longer counterpart dropping by a comparable amount to 4.71%. Gold rose by over 1%, while the US dollar weakened against other major currencies.
Wage Growth Slows
Last month, wage growth cooled down. Hourly pay increased only by 0.1%, which fell short of predictions of 0.3%, and lagged behind the pace set in August’s 0.3%. On a year-over-year basis, average hourly earnings were higher by 3% against forecasts for 3.2% and August’s 3.1%.
What the Numbers Suggest
The soft employment numbers and the increase in joblessness may allow the Federal Reserve to keep interest rates steady despite inflation still running high. The data indicates the economy is slowing down more quickly than earlier reports had shown.
That picture gains weight from the revision to July’s jobs figures, which changed a reported gain into a loss.
Bitcoin’s Reaction
The currency has shown staying power following the report, holding onto its earlier gains even as the broader economic picture remained mixed.
Key Facts Box
- U.S. added 29,000 jobs in September (vs. forecast of 90,000)
- Unemployment rate rose to 4.2% (vs. expectation of 4.1%)
- August’s gain revised down from 162,000 to 133,000
- July’s 21,000 jobs gain revised to a loss of 10,000
- Average hourly earnings +0.1% last month (vs. forecast +0.3%)
- Year-over-year hourly earnings +3% (vs. forecast +3.2%)
These numbers show an economy that is losing speed, with businesses holding back on adding workers. Policymakers at the Federal Reserve will study these results carefully before choosing whether to leave interest rates where they are.
The markets are currently pricing in a cooling economy, with bonds falling, gold rising, and the dollar weakening, while bitcoin has kept its gains.
Source material: “U.S. added just 29,000 jobs in September, with unemployment rate rising to 4.2%,” CoinDesk.
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