The U.S. labor market weakened sharply in September, with employers adding 29,000 jobs and the unemployment rate rising to 4.2%. The figures fell well short of expectations and were accompanied by downward revisions to previous months, while slower wage growth added to signs of cooling employment conditions.
Jobs growth misses expectations
The U.S. economy added 29,000 nonfarm jobs in September, according to the government’s monthly employment report released Friday. That was significantly below the 90,000 jobs economists had expected and marked a slowdown from August.
August’s increase was revised down to 133,000 from the previously reported 162,000. July’s result was also revised substantially: an initially reported gain of 21,000 jobs became a loss of 10,000.
The unemployment rate rose to 4.2%, exceeding both the 4.1% forecast and August’s 4.1% reading. The combination of weaker hiring and a higher unemployment rate pointed to a softer labor market than expected.
Wage growth also slows
Average hourly earnings increased by 0.1% in September, below the 0.3% increase forecast by economists and August’s 0.3% rise. On an annual basis, wages were up 3%, compared with expectations for 3.2% and August’s 3.1% increase.
The report matters for monetary policy because the Federal Reserve is balancing employment conditions against still-elevated inflation. A weaker labor market could give policymakers more room to keep interest rates unchanged, even as price pressures remain a concern. The employment figures alone do not determine the Fed’s next decision.
Markets react to the report
Bitcoin had already been trading higher when the data was released and remained just below $87,000 in the minutes afterward, up about 2% over 24 hours. U.S. stock index futures also strengthened, with Nasdaq futures up 1.2%.
The bond market moved in the opposite direction to yields: the 10-year Treasury yield fell 7 basis points to 5.17%, while the two-year yield declined by a similar amount to 4.71%. Gold gained more than 1%, and the U.S. dollar weakened against major currencies. These moves reflected the market’s response to expectations for a potentially less restrictive interest-rate outlook, rather than a change announced by the Federal Reserve.
Moneyiar market picture
Moneyiar data at 8:59 a.m. on October 3, 2026, showed Bitcoin at $84,628.42, down 1.86% over 24 hours but up 0.52% over seven days. JUST was priced at $0.136233, up 5.5% over 24 hours and 10.92% over seven days.
WINkLink stood at $0.000047176, down 3.15% over 24 hours and up 8.06% over seven days. Ore traded at $114.28, down 9.06% over 24 hours while gaining 38.34% over seven days. The market figures and the employment-report reaction are separate snapshots taken at different times. According to CoinDesk, Bitcoin held its earlier gains immediately after the jobs release.
