Labor market faltered in September as jobs increased by just 29,000, unemployment rate rose to 4.2%
The United States labor market slowed significantly in September, adding just 29,000 nonfarm payroll jobs and missing economists' expectations. Bureau of Labor Statistics data released Friday showed the unemployment rate ticked up to 4.2 percent. The softer-than-expected job growth follows a sharp drop from the previous month's gains. Economists polled by Bloomberg had forecast an increase of 85,000 jobs, while CNBC reported expectations centered around 84,000. In response to the cooling labor market, the Federal Reserve is now expected to skip an October rate hike. Top Democrats criticized the economic figures, pointing to what they termed a failing economic agenda.
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- ✓ U.S. nonfarm payrolls increased by 29,000 in September.
- ✓ The U.S. unemployment rate rose to 4.2% in September.
- ✓ Economists surveyed by Bloomberg expected a gain of 85,000 jobs.
What changed
The Bureau of Labor Statistics released September employment figures showing job gains of 29,000 and an unemployment rate of 4.2 percent.
Live updates
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US Job Growth Slows Sharply to 29,000 as Unemployment Rises
The United States labor market slowed significantly in September, adding just 29,000 nonfarm payroll jobs and missing economists' expectations. Bureau of Labor Statistics data released Friday showed the unemployment rate ticked up to 4.2 percent. The softer-than-expected job growth follows a sharp drop from the previous month's gains. Economists polled by Bloomberg had forecast an increase of 85,000 jobs, while CNBC reported expectations centered around 84,000. In response to the cooling labor market, the Federal Reserve is now expected to skip an October rate hike. Top Democrats criticized the economic figures, pointing to what they termed a failing economic agenda.
Why it matters
The September employment report carries heightened political significance as the final jobs release before the upcoming midterm elections. A cooling labor market directly alters the macroeconomic trajectory, pushing the Federal Reserve to reconsider its monetary tightening path. Financial markets responded quickly to the weaker figures by pricing out expectations for an immediate October interest rate increase.
What is confirmed
- U.S. nonfarm payrolls increased by 29,000 in September.
- The U.S. unemployment rate rose to 4.2% in September.
- Economists surveyed by Bloomberg expected a gain of 85,000 jobs.
Still unconfirmed
- Top Democrats slammed what they called Trump's failing economic agenda following the jobs report.
What to watch next
- The upcoming Federal Reserve meeting to determine if policymakers skip the anticipated October rate hike.
- Further economic fallout and political messaging ahead of the midterm elections.
confidence 100%Sources used for this update (9)
- CNBC — The September jobs report will be released Friday. Here's what to expect
- CNN — What to expect from today’s jobs report
- cnbc.com — U.S. nonfarm payrolls increase by 29,000 in September, less than expected; unemployment rises to 4.2%
- Reuters — Fed seen skipping October rate hike as job market cools
- The Guardian — Top Democrats slam ‘Trump’s failing economic agenda’ after weaker-than-expected jobs growth – US politics live
- www.theguardian.com — US added just 29,000 jobs in September in sharp drop from last month’s gains
- www.cnn.com — What to expect from today’s jobs report
- www.cnbc.com — Jobs report September 2026: - CNBC
- finance.yahoo.com — September's jobs report misses: US added just 29,000 jobs ...
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