US adds just 29,000 jobs in September, missing expectations by a wide margin; unemployment rate at 4.2 percent as August payrolls are revised lower by 29,000
The US economy added just 29,000 jobs in September, sharply missing market expectations of 89,000 and marking the third-weakest monthly jobs report of 2026, according to data released by the US Bureau of Labour Statistics on Friday.
The unemployment rate stood at 4.2 per cent, above expectations of 4.1 per cent, while August’s payroll gain was revised down by 29,000 jobs to 133,000. The latest figures point to a sharp loss of momentum in the US labour market, with employment growth slowing across most major industries.
Total nonfarm payroll employment rose by 29,000 in September, well below the average monthly gain of 45,000 over the previous 12 months. Employment across all major industries changed little during the month.
Healthcare remained the strongest source of job creation, adding 17,000 positions in September, although hiring slowed considerably from its average monthly gain of 33,000 over the previous year.
Construction employment increased by 11,000, while manufacturing payrolls rose by 9,000. Manufacturing employment has now increased by 72,000 since its recent low in December 2025.
Financial activities and employment fell by 7,000 in September. The sector has shed 129,000 jobs since reaching a recent peak in May 2025, with most of the losses concentrated in insurance carriers and related activities.
More from BusinessThe labour market’s broader measures remained largely stable. The labour force participation rate held at 61.8 percent, while the employment-population ratio remained at 59.2 percent.
The number of unemployed people was little changed at 7.1 million, while long-term unemployment stood at 1.9 million, accounting for 27.1 per cent of all unemployed people.
The September jobs report comes amid close scrutiny of the US labour market for signs of further cooling and its implications for the Federal Reserve’s monetary policy.
