WASHINGTON, United States (AFP) — 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 President Donald Trump’s Republican Party is facing a stern test over his handling of the economy.

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 labor market in the United States in the last year, as an aging population requires more care both 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.

Construction added 11,000 jobs and manufacturing 9,000 jobs, the data showed.

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.

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.

The US labor market has been largely in balance this year, with modest job gains and a relatively steady unemployment rate.

That steadiness has allowed the Fed to focus on the inflation side of its mandate, but any weakness in the labor market may give policy makers pause.

Raising interest rates tends to cool inflation but can also limit economic activity, which can affect the job market.