US Payroll Growth Misses Expectations as Unemployment Rises

U.S. nonfarm payrolls increased by just 29,000, far below expectations of 90,000 and down sharply from the previous reading of 162,000.
The unemployment rate rose to 4.2%, above the 4.1% expected.
The payroll reading represents a roughly 68% miss versus expectations and an 82% decline from the previous month. Combined with softer labor and inflation data, the report could strengthen expectations for earlier or deeper Federal Reserve rate cuts.
Continued deterioration in the labor market, however, could shift market attention from rate-cut expectations toward broader recession risks.