US Adds Just 29,000 Jobs in September as Unemployment Rises to 4.2%

US employers added just 29,000 jobs in September 2026, far below expectations, while the unemployment rate rose to 4.2% from 4.1% in August, pointing to a sharp slowdown in hiring even as widespread layoffs remain limited.

Advertisement

The September job gain was well below economists’ expectation of around 90,000 jobs. August employment growth was also revised down to 133,000 from the earlier estimate of 162,000, according to government data reported by the Times of India.

Hiring Slows Across the US Labour Market

The latest data shows a slower pace of employment growth across several major industries. Healthcare added 17,000 jobs in September, while construction gained 11,000 and manufacturing added 9,000.

Financial activities, however, continued to see employment decline, with the sector losing 7,000 jobs during the month. The sector has shed 129,000 jobs since reaching a recent employment peak in May 2025, with much of the decline concentrated in insurance.

Advertisement

Also Read: Apple Puts 5,000 AppleCare AI Job Cuts on Hold

Average hourly earnings continued to increase, but wage growth remained moderate. Average hourly earnings were up 3.0% from a year earlier, according to the latest employment data.

What the Jobs Data Means for Employees

The rise in unemployment and sharp slowdown in hiring point to a more cautious US employment market. However, the latest data does not indicate a broad wave of layoffs.

Reuters reported that initial unemployment claims remain historically low, suggesting that the weaker jobs growth is being driven more by slower hiring than by a sharp increase in job losses.

Advertisement

For employees and jobseekers, the data suggests that hiring conditions may remain selective, with employers continuing to be cautious about adding new workers.

The combination of slower hiring and relatively limited layoffs reflects a labour market where both recruitment and workforce movement remain subdued.

The September report also comes as the US Federal Reserve weighs its next policy decisions.

The weaker employment numbers have reduced expectations for another interest-rate increase in October, although inflation and other economic factors remain important considerations.