- US employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the latest Bureau of Labor Statistics report.
The US labor market added 29,000 nonfarm jobs in September, down from a revised 133,000 increase in August, while the unemployment rate rose to 4.2%, according to the September Employment Situation report from the Bureau of Labor Statistics.
The September payroll gain was below the 45,000 average monthly increase recorded over the previous 12 months. BLS said employment changed little across all major industries during the month. The unemployment rate has remained between 4.1% and 4.3% since March. The number of unemployed people stood at 7.1 million in September.
The report follows separate private payroll data showing 90,000 September jobs from ADP, highlighting the difference between the private-sector measure and the broader government employment report.
Healthcare Leads Limited Job Growth
Healthcare remained one of the few areas showing a clear increase in employment, adding 17,000 jobs in September. That was below its 33,000 average monthly gain over the previous 12 months. Ambulatory healthcare services added 13,000 jobs, while hospitals added 12,000. Nursing and residential care facilities lost 9,000 positions.
Construction employment increased by 11,000, roughly matching its recent pace. Nonresidential specialty trade contractors added 12,000 jobs. Manufacturing employment rose by 9,000 in September and is now 72,000 above its recent low in December 2025. Plastics and rubber products manufacturing added 5,000 jobs, while machinery manufacturing also gained 5,000.
Financial activities employment declined by 7,000. The sector has lost 129,000 jobs since reaching a recent peak in May 2025, with insurance carriers and related activities accounting for most of the decline.
Employment was little changed across other major industries, including retail, transportation and warehousing, information, professional and business services, leisure and hospitality, government, and social assistance.
Wage Growth Slows as Previous Jobs Data Gets Revised
Average hourly earnings for private-sector workers increased by 5 cents, or 0.1%, in September to $37.81. Wages were up 3.0% from a year earlier. For production and nonsupervisory workers, average hourly earnings increased 7 cents, or 0.2%, to $32.60. The average private-sector workweek remained unchanged at 34.4 hours.
The report also contained significant revisions to the previous two months. July payroll growth was revised from an increase of 21,000 to a decline of 10,000. August employment growth was revised from 162,000 to 133,000. Combined employment for July and August was therefore 60,000 lower than previously reported.
The household survey showed the labor-force participation rate at 61.8% and the employment-population ratio at 59.2%, with both measures little changed during the month.
The number of people working part time for economic reasons remained at 4.5 million, while 5.8 million people outside the labor force said they wanted a job but were not counted as unemployed because they had not recently searched for work or were unavailable to start.
The September report gives investors another data point as markets assess the labor market alongside inflation, Treasury yields and Federal Reserve policy. Recent Federal Reserve rate projections put the median federal funds rate at 4.1% at the end of 2026.
The next Employment Situation report, covering October, is scheduled for Nov. 6 at 8:30 a.m. ET.