Weak US hiring and higher mortgage rates add to economic concerns

US employers added 29,000 jobs last month and the unemployment rate rose to 4.2%, according to figures from the Labor Department cited by ABC News. Hiring fell from a revised 133,000 in August, while economists had expected September payrolls to increase by about 90,000. Revisions also reduced the combined July and August job totals by 60,000.

Average hourly wages rose 3% from a year earlier, the smallest annual increase since May 2021. The figures came as other indicators pointed to pressure on households. The Conference Board said consumer confidence fell 6.7 points in September to 81.9, its lowest level in more than a decade.

Respondents frequently cited the cost of petrol, goods and services, while wages were described as stagnating. Mortgage borrowing also became more expensive. Freddie Mac said the average 30-year fixed-rate mortgage rose to 7.28% from 7.03% in the previous week, its highest level since November 2023.

The average 15-year rate increased to 6.60% from 6.42%. The labour market remained active but showed signs of slowing. Job openings fell in August to 7.08 million from a revised 7.34 million, while layoffs declined and the number of people quitting was little changed.

Inflation eased in August compared with economists’ expectations, with consumer prices up 3.4% from a year earlier. Core prices, excluding food and energy, rose 3%. The economy expanded at a 2.2% annual rate in the second quarter, supported by consumer spending and business investment.

The weaker jobs report helped ease concerns about further interest-rate increases, according to the source. US shares rose, with the S&P 500 ending the week within 0.8% of its August record.