US Jobs Report Shocks: 29,000 Hires, Jobless Rate Rises

September US payrolls rose just 29,000 jobs, far below ~84,000-90,000 forecasts, as unemployment climbed to 4.2% and prior months were revised lower.

US employers added just 29,000 jobs in September, a fraction of what economists expected, as government data released Friday showed the unemployment rate rising slightly to 4.2%. The Bureau of Labor Statistics reported that employment in most major sectors was largely unchanged, with hiring momentum fading across the world's largest economy.

The report also included downward revisions totaling 60,000 jobs across July and August, according to the BLS. The most striking adjustment showed July, previously reported as a 21,000-job gain, had actually seen the economy lose jobs that month. The New York Post reports that August's gain was cut from an initially reported 162,000 to 133,000, meaning the economy added an average of just 45,000 jobs over the past 12 months — a more anemic pace than previously believed.

Health care again supplied most of the gains, adding 17,000 jobs — though that was slower than its average monthly gain of 33,000 over the past year, as an aging population requires more care in hospitals and at home. Construction added 11,000 jobs and manufacturing 9,000. The financial sector continued its slide, shedding 7,000 roles and bringing its cumulative losses since a May 2025 peak to 129,000, mostly among insurance companies. According to the New York Post, information services lost 10,000 jobs and professional and business services fell by 9,000, with AI cited in over 120,000 job cut announcements this year.

Average hourly earnings were up 3.0% on the year, continuing to lag behind stubbornly high inflation and meaning most workers are seeing real wage losses, according to the BLS. Democratic Senator Elizabeth Warren seized on the data to criticize President Trump's economic record, saying paychecks are growing at their slowest rate in nearly seven years outside the Covid-19 pandemic. She argued real wages have fallen 0.7% since the start of the US war against Iran launched in late February, a conflict that has sent global energy prices skyrocketing and choked a key trading route.

The weak data arrives weeks after the Federal Reserve raised interest rates to address high prices while holding to its dual mandate of 2% inflation and maximum employment. Two key Fed policymakers indicated this week the central bank may not raise rates again at its October meeting, though markets continue to expect a further hike before year-end. The New York Post reports stocks rose on the news — the Dow jumped 362 points — as the disappointing data gave officials breathing room to hold off a politically fraught hike before the November midterms, with a December quarter-point move still projected by most investors.

The report lands five weeks before key midterm elections where President Trump's Republican Party faces a stern test over its handling of the economy. The Cryptonomist reports the weak jobs data pushed Bitcoin close to $87,000, climbing nearly 2% to roughly $86,600 after the release, while the 10-year Treasury yield dropped 7 basis points to 5.17% as markets priced in a more accommodative rate outlook. With the labor market's earlier steadiness now fraying, any further weakness could force policymakers to weigh employment risks against elevated inflation heading into the final quarter.