The numbers: The economy added 136,000 new jobs in September, the government said Friday. Economists polled by MarketWatch had forecast a 150,000 increase.

This is the slowest pace of job growth in four months, as businesses grew more cautious about hiring, but employment gains for August and July revised up by a combined 45,000

And in a separate survey, the U.S. unemployment rate dropped to 3.5%, the lowest rate since December 1969. The number of unemployed people fell by 275,00 over the month.

One dark spot in the report was that the increase in worker pay over the past 12 months fell to 2.9% from 3.2%. Average hourly earnings were little changed in September following an 11-cent gain in August.

What happened: With manufacturing activity weak, the bulk of the hiring in September was concentrated in the services sector. Education and health care providers filled 40,000 positions.

Government added 22,000 workers in September, but only 1,000 of the jobs were due to federal hiring for the 2020 Census. Economists had expected a much bigger increase in census workers.