WASHINGTON The U.S. unemployment rate fell to 3.5% in September, the lowest level in nearly five decades, even though employers appeared to turn more cautious and slowed their hiring.
WASHINGTON — The U.S. unemployment rate fell to 3.5% in September, the lowest level in nearly five decades, even though employers appeared to turn more cautious and slowed their hiring.
The economy added a modest 136,000 jobs, enough to likely ease worries that an economy weakened by the U.S.-China trade war and tepid global growth might be edging toward a potential recession. The government on Friday also revised up its estimate of job growth in July and August by a combined 45,000.
Still, a drop-off in the pace of hiring compared with last year points to rising uncertainty among employers about the job market and the economy in the face of President Donald Trump’s numerous trade conflicts. Pay growth has also weakened, reflecting the hesitance of employers to step up wages.
“The September jobs report sent some conflicting signals, but the big picture remains one of a labor market — and an economy — whose growth is downshifting but not collapsing,” said Michael Feroli, an economist at JPMorgan Chase.
The comparatively sluggish hiring data makes it likely that the Federal Reserve later this month will cut rates for the third time this year to try to help sustain the expansion. At the same time, the drop in the unemployment rate from 3.7% may embolden some Fed officials who have resisted rate cuts.
The U.S. economy is “in a good place,” Fed Chairman Jerome Powell said Friday in remarks in Washington. “Our job is to keep it there as long as possible.”
Investors appeared pleased that the jobs report at least suggested that the economy remains resilient for now. The Dow Jones Industrial Average was up nearly 300 points in afternoon trading.
Excluding government hiring, private-sector job gains over the past three months have slowed to an average of 119,000 a month, the weakest showing in seven years.
