U.S. job growth falls short of expectations as businesses remain cautious in hiring.

U.S. job growth in September fell short of expectations and wage growth slowed, indicating that employers are becoming more cautious about hiring as costs rise. Data released by the Bureau of Labor Statistics on Friday showed that nonfarm payrolls increased by 29,000 in September, with the prior two months' figures revised down. The gain was below the expectations of all economists surveyed by Bloomberg. The unemployment rate rose to 4.2%. Solid consumer spending and strong business investment have provided support for hiring, but many cost-conscious employers remain reluctant to expand their workforce. Still, layoffs remain relatively limited. Because the unemployment rate is still low by historical standards, Federal Reserve officials can continue to focus on inflation as they consider when to raise interest rates again. After the data were released, traders reduced their bets on a Fed rate hike in October. Thomas Simons, chief U.S. economist at Jefferies LLC, said in a report, "For the Fed, this data should completely eliminate the possibility of a rate hike in October. It now appears that those policymakers who emphasize that there is still some time before another rate hike is needed are more likely to continue to remain patient."