Jobs Slow, Borrowing Costs Rise: A Tough Combination for America’s Debt

If you run a business, you know the squeeze: revenue growth slows while financing costs climb. America faces a similar challenge—and the latest employment report deserves our attention.

The October 2 jobs report showed that employers added just 29,000 jobs in September, compared with a revised 133,000 in August. July’s estimate was revised to a 10,000-job loss, and July and August combined had 60,000 fewer jobs than previously reported. Unemployment stood at 4.2%. That is weak hiring, although it does not establish that a recession has begun. Source: Bureau of Labor Statistics.

Paychecks help fund the country

Individual income and payroll taxes are major sources of federal revenue. Employment and earnings therefore matter to the government’s ability to pay its bills. Source: U.S. Treasury.

But accuracy matters: slower hiring does not automatically mean tax collections are falling. September wages still increased, and tax receipts also depend on profits, investment income, tax rules and payment timing. My concern is that sustained weakness in employment could constrain revenue growth—not that this report proves the country is already losing revenue.

Meanwhile, borrowing remains expensive

Federal Reserve data showed the 10-year Treasury yield at 5.24% on October 1, up from 5.17% on September 25. The 30-year yield rose from 5.49% to 5.61% over those dates. Source: Federal Reserve.

These market yields are not the interest rate on every dollar of existing federal debt. However, higher rates can increase financing costs when Treasury issues new debt or refinances lower-rate obligations. GAO reported that Treasury refinanced $9.1 trillion of maturing debt in fiscal 2025, illustrating the scale of that exposure. Source: Government Accountability Office.

The potential squeeze is straightforward: weaker revenue growth alongside higher borrowing costs makes managing deficits and debt harder. That is a risk worth watching, not a prediction of an imminent crisis.

What does this mean for your retirement?

You cannot control Washington’s finances, but you can review your own income needs, liquidity and diversification.

Certain annuities can provide contractually guaranteed retirement income, subject to the insurer’s financial strength and claims-paying ability. Physical precious metals may provide diversification, and Physical Precious Metals, historically, provide a hedge against inflation.

Schedule a free, no-obligation discovery call at The Complete Investor. We can explore guaranteed retirement income options or whether physical precious metals might fit your portfolio—with your goals, needs and comfort level guiding the conversation.

Schedule Your Complimentary Discovery Session

For educational purposes only; not individualized investment, tax or legal advice. Precious metals can lose value. Annuity guarantees depend on the issuing insurer and contract terms; fees, surrender charges and withdrawal restrictions may apply.