Employment in the United States grew by 29,000 jobs in September, missing analysts' expectations significantly, with the unemployment rate rising slightly to 4.2 percent, government data showed on Friday. Adding to the weak data, the Bureau of Labor Statistics (BLS) also revised down job figures for July and August by a combined 60,000 jobs, the department said in a statement. The revision to July's data showed that the world's largest economy lost jobs that month, as opposed to posting a gain of 21,000 as previously reported. The data comes ahead of key midterm elections in November where US President Donald Trump's Republican Party is facing a stern test over his handling of the economy. Analysts polled by Dow Jones Newswires and the Wall Street Journal had expected the US economy to add 84,000 jobs in September. Employment in most major sectors was largely unchanged, the BLS reported, with health care posting notable gains of 17,000. The sector has propped up the labour market in the United States in the last year, as an ageing population requires more care in hospitals and at home. Still, September's gains in the sector were slower than its average monthly gain of 33,000 over the last year. The financial sector continued its downward slide, losing 7,000 jobs in September and bringing its overall slump from a recent peak in May 2025 to 129,000. Most of the losses in that sector have been among insurance companies. Average hourly earnings for all employees were up 3.0 percent, the BLS said, with wages continuing to lag behind stubbornly high inflation -- meaning most workers are seeing real wage losses. Democratic Senator Elizabeth Warren seized on the data to criticize Trump's performance since taking office last year. "Paychecks are growing at their slowest rate in nearly seven years, outside of the Covid-19 pandemic," she said in a statement. "Since the start of Trump's war, real wages have fallen 0.7 percent as his failed agenda keeps pushing prices up," she said, referring to the US war against Iran launched in late February. The conflict has plunged the Middle East into violence and sent global energy prices skyrocketing, as Tehran's retaliatory action has targeted Washington's regional allies and choked a key trading route. The data comes after the US Federal Reserve -- which has a dual mandate to maintain inflation at a long-term two-percent target while ensuring maximum employment -- raised interest rates last month to address high prices. (AFP) Edited by Robert Kemp

US markets closed higher on Friday after weak US jobs data lowered the odds of Federal Reserve rate hikes. Major US indices spent most of the day solidly in positive territory following the lacklustre hiring data for September. Equities were also supported by a pullback in oil prices after G7 countries agreed to an emergency release of fuel reserves in light of the US-Iran war. Data showed that employment in the United States grew by 29,000 jobs in September, missing analysts' expectations of around 90,000, with the unemployment rate rising slightly to 4.2 percent. The jobs report "is lousy for the economy, but could keep the Fed from making trouble, and so the market was pretty good with it," said Chris Low of FHN Financial. "Today's report may revive the 'bad news is good news' narrative, but hoping for a weaker labor market just to secure easier financial conditions is a poor tradeoff," said eToro analyst Bret Kenwell. Following a positive day on European bourses, the S&P 500 finished up 0.7 percent, with 10 of 11 sectors in positive territory. The S&P 500 gained 56.27 points, or 0.7 percent, to 7,722.72, the Nasdaq Composite gained 319.27 points, or 1.2 percent, to 27,190.86, and the Dow rose 250.4 points, or half a percent to 51,176.96. Oil prices, meanwhile, retreated as G7 leaders held a video conference chaired by French President Emmanuel Macron, while the United States stepped up pressure on Europe to release strategic reserves and threatened a diesel export ban. The seven countries agreed to a coordinated release through the International Energy Agency of 100 million barrels "to begin immediately over four months, including a front-loaded substantial diesel release within the first 20 days," the leaders said in a statement released by Macron's office. They also said there would be no ban on diesel exports between them. US oil prices dropped sharply -- as much as five percent at one point, before recovering somewhat. The US benchmark finished down around two percent at US$91.11 per barrel. International benchmark Brent crude edged down just 0.1 percent to US$102.25 a barrel, with traders still focused on the prolonged US-Iran conflict. "Diesel is now a macro problem as much as an energy one, feeding directly into freight, food, industry, inflation and ultimately bond yields," noted Stephen Innes of SPI Asset Management. "Strategic stock releases can cool the immediate price shock, but drawing down insurance ahead of winter is hardly a comfortable signal," he added. Elsewhere, Eurozone inflation surged to 3.8 percent in September, the highest level in three years, as the war in the Middle East fuelled a jump in energy costs, official data showed on Friday. Among individual companies, Nike dropped 3.6 percent as it projected a decline in full-year sales and announced plans to cut an undetermined number of jobs while attempting to accelerate a turnaround. (AFP) Edited by Robert Kemp