U.S. employers added an estimated 29,000 jobs in September, while the unemployment rate rose to 4.2%, according to the Labor Department. Payroll gains for previous months were revised down, showing fewer summer hires than first reported.
The department now estimates employers added 133,000 jobs in August and lost 10,000 in July. The unemployment rate was 4.1% in August.
Wages Rose as Hiring Slowed
Average hourly earnings for private, nonfarm employees rose 5 cents to $37.81 in September. Wages were up 3% from a year earlier. The Labor Department’s September inflation report, due Oct. 14, will show whether paychecks kept pace with prices last month; wages did not keep up in July or August.
The labor force participation rate edged up to 61.8% from 61.6% in August. Federal Reserve officials will review the jobs and inflation reports before their next interest-rate decision on Oct. 28.
Which Industries Added Jobs?
Health care employment increased by 17,000 in September. Construction added 11,000 jobs, and manufacturing added 9,000.
Financial services lost 7,000 jobs. Employment in that industry was down 129,000 from a recent peak in May 2025. Employment changed little in other industries, including social assistance, leisure and hospitality, and professional and business services.
A separate report from ADP, released Sept. 30, estimated private employers added 90,000 jobs in September. It reported the largest gains in education and health services, leisure and hospitality, manufacturing, and construction.
A ‘Low-Hire, Low-Fire’ Labor Market
Some economists describe the current labor market as “low-hire, low-fire”: Workers are holding on to their jobs, while employers are adding fewer new positions. Low quit rates suggest workers may be reluctant to leave for other opportunities because finding a new job can be difficult.
Laura Ullrich, economic research director at Indeed Hiring Lab, said the flow of workers leaving jobs has stalled. Glassdoor’s Employee Confidence Index also showed employee confidence fell to a record low in September.
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