Archive · 2 Oct 2026
U.S. Hiring Slows Sharply as Unemployment Rises in September
American businesses added only 29,000 jobs in September, which was much less than experts expected.
The share of people without jobs rose slightly to 4.2%.
People who already have jobs are generally not being laid off in large numbers.
However, companies are also hiring fewer new workers.
This makes it harder for unemployed people to find jobs.
Nearly 1.9 million unemployed people had been jobless for at least 27 weeks.
Pay increased slowly, with private-sector hourly earnings rising 3% over the year.
Economists say fewer new workers entering the labor force may mean the country needs fewer new jobs to keep unemployment steady.
The report arrived shortly before the November 3 midterm elections as concerns about the economy and cost of living remained high.
U.S. employers added 29,000 jobs in September, far below economists’ 90,000-job expectation.
The unemployment rate rose to 4.2% from 4.1%, while the number of unemployed people reached 7.1 million.
August job growth was revised down to 133,000 from 162,000, and July was revised from a 21,000-job gain to a 10,000-job loss.
Healthcare, construction and manufacturing added jobs, while financial activities lost 7,000 positions.
The report reflects a “low-hire, low-fire” market in which layoffs remain limited but jobseekers face longer searches and fewer opportunities.
- Who
- U.S. employers, workers and jobseekers; the data were reported by the U.S. Bureau of Labor Statistics.
- What
- Hiring slowed sharply to 29,000 jobs in September, and unemployment rose to 4.2%.
- When
- The report covers September 2026 and was released before the November 3 midterm elections.
- Where
- Across the United States.
- Why
- The articles identify several possible contributors, including slower technology and government-contractor hiring, immigration changes, uncertainty over government policy and possible early AI-related job displacement.
Signs of Labor-Market Weakness
Reasons for Caution About Overstating Weakness
Overall condition
Signs of Labor-Market Weakness
The 29,000-job gain, upward unemployment-rate move, downward revisions and longer job searches suggest that the labor market is losing momentum.
Reasons for Caution About Overstating Weakness
Unemployment remains relatively low, layoffs have not risen sharply, and employers have added an average of 80,000 jobs per month this year.
Meaning of low hiring
Signs of Labor-Market Weakness
A low-hire environment is making it harder for unemployed people, younger workers and less-experienced workers to enter or reenter employment.
Reasons for Caution About Overstating Weakness
Economists say retirements among baby boomers and reduced immigration may have lowered the number of jobs needed to keep unemployment stable, potentially making near-zero job growth sufficient.
Possible causes
Signs of Labor-Market Weakness
Federal Reserve Bank of San Francisco researchers cited possible effects from immigration changes, slower technology and government-contractor hiring, AI-related displacement and policy uncertainty.
Reasons for Caution About Overstating Weakness
The researchers described these as possibilities rather than established causes and also said the data could represent early signs of broader labor-market deterioration.
- September job gains
- 29,000
- September unemployment rate
- 4.2%, up from 4.1% in August
- Unemployed people
- 7.1 million
- Long-term unemployed
- 1.9 million, or 27.1% of all unemployed people
- Labor-force participation
- 61.8%
- Average jobs added in 2026
- 80,000 per month
- Average private-sector hourly earnings
- $37.81 in September, up 5 cents from August
- Last major report before elections
- The September employment report was released before the November 3 midterm elections
