The September employment report shows that the labor market is weaker than previously anticipated, making the future path of the Fed's interest rate hike even more complicated. Here's what investors and analysts say: Seema Shah, chief global strategist at Principal Asset Management, said: “Weakening employment numbers, slowing wage growth, and rising unemployment all indicate that the labor market is cooling down rather than accelerating again. This should cool down US Treasury yields and reduce the urgency for the Federal Reserve to act.” Jerry Tempelman, vice president of economic and fixed income research at Mutual of America Capital Management, said, “The rise in the unemployment rate to 4.2% is worth paying close attention because the rise in unemployment coincides with a slowdown in recruitment, which may indicate that the Fed's austerity cycle will suppress economic activity more than expected at some point.” Ken Mahoney, CEO of Mahoney Asset Management, said: “This is the low-recruitment, low-layoff labor market we've been talking about... the market sees it as a Goldilocks state: not too hot, not too cold.” Larry Holzenthaler, senior portfolio manager at Catalyst Funds, said: “Although weak employment data may reduce the urgency of the Federal Reserve's action, inflation remains the primary concern. This may slow the pace of the Fed's interest rate hike, but higher interest rates are still the main tone.” Jeff Schulze, head of investment strategy at the Franklin Templeton Institute, said, “The labor market is booming, not boiling.”

The September employment report shows that the labor market is weaker than previously anticipated, making the future path of the Fed's interest rate hike even more complicated. Here's what investors and analysts say: Seema Shah, chief global strategist at Principal Asset Management, said: “Weakening employment numbers, slowing wage growth, and rising unemployment all indicate that the labor market is cooling down rather than accelerating again. This should cool down US Treasury yields and reduce the urgency for the Federal Reserve to act.” Jerry Tempelman, vice president of economic and fixed income research at Mutual of America Capital Management, said, “The rise in the unemployment rate to 4.2% is worth paying close attention because the rise in unemployment coincides with a slowdown in recruitment, which may indicate that the Fed's austerity cycle will suppress economic activity more than expected at some point.” Ken Mahoney, CEO of Mahoney Asset Management, said: “This is the low-recruitment, low-layoff labor market we've been talking about... the market sees it as a Goldilocks state: not too hot, not too cold.” Larry Holzenthaler, senior portfolio manager at Catalyst Funds, said: “Although weak employment data may reduce the urgency of the Federal Reserve's action, inflation remains the primary concern. This may slow the pace of the Fed's interest rate hike, but higher interest rates are still the main tone.” Jeff Schulze, head of investment strategy at the Franklin Templeton Institute, said, “The labor market is booming, not boiling.”