September Jobs Report Shows Broad Hiring Slowdown
Figures issued Friday by the U.S. Bureau of Labor Statistics show the nation's jobless rate reached 4.2% in September, with payrolls expanding by just 29,000 positions — far short of the 45,000 monthly average recorded across the preceding year. September's rate was above August's 4.1% but still beneath the 4.4% posted a year earlier. Between March and September, the rate moved within a narrow band of 4.1% to 4.3%.[S1]
September brought weaker hiring across the bulk of major sectors, with total employment figures shifting only marginally. Health care kept expanding, though its 17,000 gain fell short of the 33,000 monthly average seen over the previous year. Ambulatory health care services contributed 13,000 positions and hospitals 12,000, whereas nursing and residential care facilities shed 9,000 jobs.[S1]
Construction payrolls grew by 11,000 in September, matching the sector's 10,000 monthly average from the prior year. Manufacturing added 9,000 positions, down from August's 15,000, bringing its total increase since December to 72,000. Financial activities shed 7,000 jobs in September and has contracted by 129,000 since its May 2025 peak, with insurance carriers and related activities accounting for 90,000 of those cuts.[S1]
The information sector trimmed 10,000 positions last month and now employs 120,000 fewer people than in September 2025. Publishing recorded the deepest losses within that sector, dropping 32,600 jobs over the same 12-month span. BLS also lowered its earlier preliminary figures for July and August by 60,000 combined: August's gain was cut by 29,000, from 162,000 to 133,000, while July's 21,000 gain was revised down by 31,000 into a 10,000-job decline.[S1]
Earnings, Inflation, and Market Reaction
Average hourly earnings on private nonfarm payrolls rose 5 cents, or 0.1%, in September to $37.81, and have climbed 3% over the past year. The most recent inflation reading puts the annual U.S. rate at 3.4% for the 12 months through August. BLS plans to publish September unemployment figures for individual states later this month; New Jersey's rate stood at 4.3% in August.[S1]
Equities moved upward following the September jobs report, which came in softer than analysts had anticipated and appeared to calm investor worries about the Federal Reserve pursuing steep interest rate increases.[S1]
