US employers added 29,000 jobs in September 2026, and the unemployment rate rose to 4.2% from 4.1% in August, the Bureau of Labor Statistics reported on October 2, 2026 [1]. Revisions cut 60,000 jobs from July and August combined, so July now shows a loss of 10,000 jobs, and average hourly earnings grew 3.0% over 12 months, the slowest pace since May 2021 [1][3]. The report lowered market odds of another Federal Reserve rate hike at the October 27-28, 2026 meeting [4].
What did the September 2026 jobs report show?
The jobs report has two parts. The establishment survey asks businesses and government agencies how many people are on their payrolls; it produces the headline "nonfarm payrolls" number. The household survey asks about 60,000 households about work and job search; it produces the unemployment rate. In September 2026 the two pointed in slightly different directions [1].
Payrolls rose by 29,000, below the 84,000 that economists surveyed by Dow Jones had expected [1][3]. That was less than the average monthly gain of 45,000 over the prior 12 months [1]. The household survey was firmer: household employment rose by 406,000 and the labor force grew by 485,000, which lifted the participation rate (the share of adults working or looking for work) to 61.8% from 61.6% [1]. Because more people entered the labor force than found jobs, unemployment rose to 4.2% [1][3].
| Measure | July 2026 | August 2026 | September 2026 |
|---|---|---|---|
| Change in nonfarm payrolls | -10,000 | +133,000 | +29,000 |
| Unemployment rate | 4.1% | 4.1% | 4.2% |
| Labor force participation rate | 61.4% | 61.6% | 61.8% |
| Employment-population ratio | 58.9% | 59.1% | 59.2% |
| Average hourly earnings (private) | $37.64 | $37.76 | $37.81 |
| Average weekly hours (private) | 34.3 | 34.4 | 34.4 |
| U-6 underemployment rate | 7.9% | 7.7% | 7.6% |
Source: BLS, The Employment Situation, September 2026, seasonally adjusted; July and August payrolls as revised on October 2, 2026; September figures are preliminary [1]. DataPorium payroll and unemployment series show the same monthly figures [2].
The unemployment rate has stayed between 4.1% and 4.3% since March 2026, according to the BLS [1]. A year earlier, in September 2025, it was 4.4% [1]. The broadest official measure of labor slack, U-6, which adds people working part time who want full-time work and people who want a job but stopped looking, fell to 7.6% in September 2026 from 8.1% a year earlier [1]. CNBC noted that 7.6% was the lowest U-6 reading since January 2025 [3].
How much were July and August revised?
Revisions were as important as the new number. The BLS lowered July's change by 31,000, from +21,000 to -10,000, and August's by 29,000, from +162,000 to +133,000 [1]. Together, the two months were 60,000 jobs weaker than first reported [1].
The August figure had been read as a sign of a rebound when it came out on September 4, 2026; a DataPorium article at the time covered the original 162,000 estimate. After revisions, the three-month average of payroll gains is 51,000 a month for July through September 2026 [1]. Jefferies chief U.S. economist Thomas Simons told CNBC that the August number now looked like "nothing more than a rebound" from weak hiring in June and July [3].
Monthly revisions happen because more businesses report after the first estimate and seasonal factors are recalculated [1]. The September estimate will itself be revised twice, first with the October report on November 6, 2026 [1].
Which industries added or lost jobs in September 2026?
No major industry changed much in September, the BLS said, but the pattern of small gains and losses shows where hiring is still happening [1].
| Industry | September 2026 change | Note |
|---|---|---|
| Health care and social assistance | +23,000 | Health care alone +17,000, below its 12-month average of +33,000 |
| Construction | +11,000 | In line with its 12-month average of 10,000 |
| Leisure and hospitality | +10,000 | After +37,000 in August |
| Manufacturing | +9,000 | Up 72,000 since December 2025 |
| Transportation and warehousing | +7,600 | Little changed |
| Financial activities | -7,000 | Down 129,000 since May 2025 |
| Professional and business services | -9,000 | Temporary help services -10,900 |
| Information | -10,000 | After -18,000 in August |
| Government | -17,000 | After +44,000 in August |
Source: BLS, The Employment Situation, September 2026, Summary table B and release text [1].
Within health care, ambulatory services added 13,000 jobs and hospitals 12,000, while nursing and residential care facilities lost 9,000 [1]. In finance, most of the decline since May 2025 has been in insurance carriers and related activities, which lost 90,000 jobs over that period [1]. Temporary help, often an early signal because companies cut temps before permanent staff, fell by 10,900 in September after a small gain in August [1].
The private sector as a whole added 46,000 jobs, while government payrolls fell by 17,000 [1]. Goods-producing industries added 18,000 and private service-providing industries 28,000 [1].
Why did wage growth slow?
Average hourly earnings for private employees rose 5 cents, or 0.1%, to $37.81 in September 2026 [1]. Over 12 months they were up 3.0%, the smallest annual gain since May 2021, below the 0.3% monthly and 3.1% annual readings Wall Street had expected [3]. For production and nonsupervisory workers, pay rose 7 cents to $32.60 [1].
Slower pay growth matters for two reasons. For households, it is running below consumer inflation: the consumer price index rose 3.4% in the 12 months through August 2026, the latest reading available when the jobs report came out, so the average paycheck lost purchasing power over the year [7]. For the Federal Reserve, slower wage growth reduces the risk that labor costs keep inflation high. The average private workweek held at 34.4 hours, so weekly earnings rose only slightly, to $1,300.66 [1].
What does the jobs report mean for the Fed's October 2026 meeting?
The Federal Reserve raised its target range for the federal funds rate by a quarter point to 3.75% to 4.00% on September 16, 2026, by a 12-0 vote, saying inflation "remains elevated" [5][6]. Its next meeting is on October 27-28, 2026 [6].
After the September jobs report, the CME FedWatch tool, which reads the odds from interest rate futures, showed only a 17% chance of a quarter-point hike in October, down from about 36% a week earlier [4]. Futures still priced better-than-even odds of a hike in December: above 75% on FedWatch, CNBC reported on October 2 [4]. Those odds move every day, so they describe market expectations on that date, not a forecast.
The bond market had already pushed long-term rates to their highest levels in more than two decades. DataPorium data show the 10-year Treasury yield at 5.29% on September 30, 2026, up from 4.44% on June 30 [6]. Yields dipped right after the release, CNBC reported, but the 10-year closed October 2 at 5.28%, up from 5.24% the day before, and the 2-year closed at 4.83% [3][6].
September 2026 payrolls rose by 29,000, revisions removed 60,000 jobs from July and August, and unemployment edged up to 4.2% as more people joined the labor force.
How weak is the labor market really?
The data describe a "low-hire, low-fire" job market rather than a collapse. Payroll growth has averaged 51,000 a month over the last three months and 45,000 over the prior 12 months [1]. The unemployment rate in September 2026 (4.2%) was lower than a year earlier (4.4%), and U-6 was lower too [1]. Part-time work for economic reasons held at 4.5 million people, and long-term unemployment (27 weeks or more) was 1.9 million, or 27.1% of the unemployed [1].
The weak spots are concentrated. Unemployment for Black workers rose to 7.0% from 6.0% in August, the only group with a clear change in September [1]. Information, finance and temporary help have been shrinking [1]. Other indicators that CNBC cited at the time were stronger: the Commerce Department revised first- and second-quarter 2026 GDP growth to 2.5% and 2.2%, and the Atlanta Fed's model was tracking third-quarter growth at 3.7% [3].
The next jobs report, for October 2026, is scheduled for November 6, 2026 [1].
Frequently asked questions
How many jobs were added in September 2026?
Nonfarm payrolls rose by 29,000 in September 2026, according to the preliminary BLS estimate released on October 2, 2026 [1]. The figure will be revised with the October and November reports.
What is the unemployment rate in September 2026?
The unemployment rate was 4.2% in September 2026, up from 4.1% in August and down from 4.4% in September 2025 [1]. About 7.1 million people were unemployed [1].
Why did the unemployment rate go up if jobs were added?
The labor force grew by 485,000 in September while household employment rose by 406,000, so more people were looking for work than found it [1]. That pushed the participation rate up to 61.8% and the unemployment rate up to 4.2% [1].
When is the next jobs report?
The BLS is scheduled to publish the October 2026 Employment Situation report on Friday, November 6, 2026, at 8:30 a.m. Eastern time [1].
Sources & References
- [1] BLS, The Employment Situation, September 2026 (released October 2, 2026)
- [2] DataPorium Economic Metrics (nonfarm payrolls and unemployment rate by month)
- [3] CNBC, Labor market faltered in September as jobs increased by just 29,000, unemployment rate rose to 4.2% (October 2, 2026)
- [4] CNBC, Fed rate hike odds decline after September jobs report (October 2, 2026)
- [5] Federal Reserve, FOMC statement, September 16, 2026
- [6] DataPorium Interest Rates (Treasury yields and Fed decisions)
- [7] BLS, Consumer Price Index, August 2026 (released September 11, 2026)
