October 2, 2026
September Jobs - Missing the Mark
Job growth slows; Unemployment ticks higher. U.S. employers added just 29k jobs last month, far below the anticipated 90k. August’s job gains were revised lower to 133k, from 162k suggesting the labor market may not be as strong as was expected. The unemployment rate moved up to 4.2%, a moderate increase month-over-month but still low by historical standards. While one month is too short a period to make a final judgement, today’s report is an indication that the uncertainty from the Iran war and inflationary pressures may be proving to be a headwind to the labor market. The federal reserve will need to take the potential for a weakening labor market into consideration when determining the future path of rates – the next meeting is scheduled for Oct. 28th.
- 29k Jobs added in September. The U.S. labor market added 29k jobs in September after vastly beating expectations and adding 133K in August (revised down from 162K originally reported). Economists were anticipating +90K job gains for the month. Year-to-date, U.S. employers have added about 68K jobs per month, up from just 10K per month in 2025 and inline with expectations for about 70K per month when the year began. September job gains were below the average monthly gain of +45K over the prior 12 months. According to the report, employment in all major industries was little changed. Health Care employment continued its upward trend (+17k) and construction employment similarly rose (+11k). Financial services was a headwind, albeit minor coming in at -7k.
- Unemployment ticked higher to 4.2%. The U.S. unemployment rate registered 4.2% in September, 0.1% higher than August and above expectations for no change. The labor force participation rate increased slightly to 61.8% from 61.6% in August.
