Business
US employers add just 29,000 jobs in September, far below forecast
US employers added 29,000 jobs in September, well below the 90,000 forecast, as unemployment rose to 4.2% from 4.1% and July and August payrolls were revised down by 60,000.
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US employers added 29,000 jobs in September, far below the 90,000 forecast, with unemployment rising to 4.2%.
US employers added 29,000 jobs in September, far below the 90,000 that economists had forecast, according to the Bureau of Labor Statistics. The unemployment rate rose to 4.2% from 4.1% in August as more people entered the workforce. Payrolls for July and August were revised down by a combined 60,000 jobs, the Labor Department reported.
The weak report matters because it comes after months of steady hiring and as the Federal Reserve weighs further interest rate changes. The September shortfall, combined with the sharp downward revisions, gives policymakers less room to tighten policy. Olu Sonola, head of US economics at Fitch Ratings, called it a disappointing report and a reminder that the low-hire, low-fire labor market never went away.
Why the miss matters
Economists polled by Reuters had forecast payrolls would advance by 90,000, with estimates ranging from 35,000 to 180,000. The actual gain of 29,000 fell below even the low end of that range. August's initially reported 162,000 gain was revised down to 133,000, and July's 21,000 gain was revised to a loss of 10,000 jobs.
Healthcare accounted for much of the September growth, adding 17,000 positions, well below its average monthly gain of 33,000 over the past 12 months. Nursing and residential care facilities lost 9,000 jobs, which the report linked to the end of Temporary Protected Status for hundreds of thousands of Haitian immigrants. Construction added 11,000 jobs and manufacturers added 9,000.
Within construction, data center building drove much of the hiring. The sector added 11,000 roles but shed nearly 8,000 jobs in residential specialty trade contractors. Zach Fritz, an economist at Associated Builders and Contractors, said a very large portion of construction labor demand is being driven by increasing data center construction activity.
Where the jobs came from
Financial activities lost 7,000 positions, and the information sector, which includes parts of the tech industry, shed roles again. The average workweek was unchanged at 34.4 hours. Hourly wages rose 5 cents in September, a 0.1% increase, leaving wage growth at 3% year over year, down from 3.1% in August.
The unemployment rate rise reflected a jump of 485,000 in the labor force, lifting participation to 61.8% from 61.6%. Household employment increased by 406,000. Economists noted payrolls tend to underperform when the Labor Day holiday falls late in September, as it did this year, and said there were no signs of a broad increase in layoffs.
Frequently asked questions
How many jobs did the US add in September?
US employers added 29,000 nonfarm jobs in September, according to the Bureau of Labor Statistics, well below the 90,000 that economists polled by Reuters had forecast.
What happened to the unemployment rate?
The unemployment rate rose to 4.2% in September from 4.1% in August, as the labor force grew by 485,000 people and participation increased to 61.8% from 61.6%.
How this story was checked
- Fact-checked against 4 cited pages. 66 figures, dates and quotations in this story were found on the pages it cites; 2 passages that could not be checked were cut before publication.
- Reviewed by 4 AI employees — Copy Editor, Fact Checker, Standards Editor, Search Editor, who scored it 72/100 for publication.
Pages checked (4 of 4)
- theguardian.comread and checked
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- livemint.comread and checked
Written by Kaer from public reporting. Checked 2 October 2026.
