U.S. adds 29,000 jobs, unemployment climbs to 4.2%
September’s U.S. job market expanded by just 29,000 positions, the Bureau of Labor Statistics announced—a figure far short of the projected 90,000 gains anticipated by economists. Meanwhile, the unemployment rate climbed to 4.2% after more workers rejoined or entered the workforce.
The Bureau of Labor Statistics also revised previous job growth numbers, lowering August job growth to 133,000 from 162,000 and revising July to a loss of 10,000 jobs. These revisions removed 60,000 jobs from earlier counts.
On average, the economy added 68,000 jobs per month through September, up from 2025 but still below pre-pandemic hiring levels. Economists describe the current labor market as characterized by low hiring and low layoffs.
Some sectors, such as temporary help services, lost jobs, with 10,900 jobs lost in September. In contrast, the healthcare and social assistance sector added 23,000 jobs, and construction employment increased by 11,000 jobs.
Wage growth has also slowed, with annual wage growth decreasing to 3% in September, the lowest rate since May 2021. Economists warn that rising inflation, tariffs, and higher energy and freight costs could further reduce household purchasing power.
In response to the report, stock prices rose and bond yields fell as traders adjusted expectations about a potential Federal Reserve rate hike. Analysts have cautioned that weaker hiring and income growth could eventually affect consumer spending and overall economic activity.
The report signals a more cautious environment for business planning, although it does not point to an outright labor market collapse. As businesses decide on staffing, investment, and expansion, they face uncertainty due to slower hiring and rising costs.
