US job growth slowed in September, but the weak reading does not appear to signal a fundamental shift in the labor market, as economists believe the decline was partly linked to seasonal factors related to the timing of the Labor Day holiday.
According to data released Friday, the US economy added 29,000 jobs in September, well below expectations for an increase of 90,000, while the unemployment rate edged up to 4.1%.
Some of the volatility is related to the seasonal adjustments used by the government to remove seasonal effects from the data. Employment also tends to be weaker when the Labor Day holiday falls later in the month, as it did this year.
July nonfarm payrolls were revised down by 31,000, turning a previously reported gain of 21,000 into a decline of 10,000 jobs. August payrolls were also revised down by 29,000, from a previously reported increase of 162,000 to 133,000.
Following these revisions, total employment gains in July and August were 60,000 lower than previously reported.
What does it mean? The weak September jobs reading alone is not enough to signal a broad deterioration in the labor market, particularly given limited layoffs. However, rising unemployment and continued pressure from energy and trade costs could make upcoming interest-rate decisions more sensitive to employment and inflation data.
US monthly jobs report — September 2026
Forecast
August
September
Change
Jobs (thousand)
90.0
133.0
29
(104)
Unemployment rate (%)
4.1%
4.1%
4.2%
0.1%
Average hourly earnings ($)
—
37.76
37.81
0.05
US job growth slowed in September, but the weak reading does not appear to signal a fundamental shift in the labor market, as economists believe the decline was partly linked to seasonal factors related to the timing of the Labor Day holiday.
According to data released Friday, the US economy added 29,000 jobs in September, well below expectations for an increase of 90,000, while the unemployment rate edged up to 4.1%.
Some of the volatility is related to the seasonal adjustments used by the government to remove seasonal effects from the data. Employment also tends to be weaker when the Labor Day holiday falls later in the month, as it did this year.
July nonfarm payrolls were revised down by 31,000, turning a previously reported gain of 21,000 into a decline of 10,000 jobs. August payrolls were also revised down by 29,000, from a previously reported increase of 162,000 to 133,000.
Following these revisions, total employment gains in July and August were 60,000 lower than previously reported.
What does it mean? The weak September jobs reading alone is not enough to signal a broad deterioration in the labor market, particularly given limited layoffs. However, rising unemployment and continued pressure from energy and trade costs could make upcoming interest-rate decisions more sensitive to employment and inflation data.
US monthly jobs report — September 2026
Forecast
August
September
Change
Jobs (thousand)
90.0
133.0
29
(104)
Unemployment rate (%)
4.1%
4.1%
4.2%
0.1%
Average hourly earnings ($)
—
37.76
37.81
0.05
