The U.S. economy added just 29,000 jobs in September 2026, far fewer than economists expected, and the unemployment rate rose to 4.2%, the Labor Department reported on October 2. The weak September jobs report has cooled talk of another Federal Reserve rate hike this month, and stocks moved higher as investors bet on a pause.
- Jobs added: 29,000 in September, against an economist estimate of about 90,000.
- Unemployment rate: 4.2%, above the 4.1% economists expected.
- Revisions: July and August were revised down by a combined 60,000 jobs. July now shows a loss of 10,000.
- Wages: Average hourly earnings were up 3% from a year earlier, below the 3.2% expected.
- Fed outlook: Futures traders put the chance of no change in rates in October at about 80%, according to the CME FedWatch tool.
September jobs report by the numbers
Private employers added 46,000 jobs, well below the 85,000 forecast, while government payrolls shrank by 17,000, according to Fox Business. Revisions made the picture weaker. July’s figure was cut from a gain of 21,000 to a loss of 10,000, and August’s from 162,000 to 133,000.
Hiring was thin across most of the economy. Health care added about 16,700 jobs, construction 11,000 and manufacturing 9,000. Financial activities lost about 7,000 jobs.
