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U.S. Employers Add 29,000 Jobs In September As Hiring Slows
The Labor Department reported on Friday, October 2, 2026, that U.S. employers added 29,000 jobs in September, a shortfall that signaled a cooling labor market.[1]
Combined revisions for July and August trimmed 60,000 jobs from prior estimates, pushing July into a net loss and cutting August's gain to 133,000.[2] The unemployment rate rose to 4.2% from 4.1% as roughly 485,000 more people entered the labor force and participation climbed 0.2 percentage point.[3] Average hourly earnings were up 3% from a year earlier, the smallest annual gain since May 2021.[2] Financial services and government shed workers in September, while health care added about 17,000 jobs and most other sectors slowed.[3]
Economists had been expecting roughly 90,000 payrolls for September, making the shortfall especially striking.[2] Revisions that pared summer gains show hiring cooled over the summer rather than reflecting only a one-month dip.[3] Layoffs remain low even as turnover has slowed, making it harder for jobseekers and pushing the average unemployed duration past six months in August.[2]
Markets reacted by pushing S&P 500 and Nasdaq futures higher and sending the 10-year Treasury yield down to 5.17% as investors trimmed bets on another near-term Federal Reserve hike.[2] The report is the final jobs readout before the November 3 midterm elections and arrives amid sliding public and worker confidence, including record-low employee confidence on Glassdoor and weak approval for the president on cost-of-living and economy measures.[2]
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📌 Key Facts
- The Labor Department reported on Friday, October 2, 2026, that U.S. employers added 29,000 jobs in September.
- Combined revisions for July and August trimmed 60,000 jobs from prior estimates, pushing July into net job losses and revising August job gains to 133,000.
- Financial services and government shed workers in September while most other industries added jobs more slowly; notably health care added 17,000 jobs.
- The average hourly earnings metric was up 3% year‑over‑year in September — the smallest annual gain since May 2021 — a deceleration likely leaving real wages below inflation.
- The unemployment rate rose to 4.2% in September from 4.1% in August amid roughly 485,000 more people entering the labor force and a 0.2‑point rise in the labor‑force participation rate.
- Markets reacted to the weak jobs report: S&P 500 and Nasdaq futures rose and the 10‑year Treasury yield fell to 5.17% from 5.24%, with investors pricing a lower chance of a Fed hike at the late‑October meeting though still expecting at least one more increase this year.
- The report coincided with weakening public and worker sentiment: an AP‑NORC survey showed 17% approval of President Trump's handling of the cost of living and 26% approval for the economy, the consumer confidence index dropped to its lowest level since 2014, Glassdoor's employee confidence hit record lows in 2026, and in August the average unemployed person had been jobless for more than six months.
📰 Source Timeline (3)
Follow how coverage of this story developed over time
- The NPR article confirms that the Labor Department reported on Friday, October 2, 2026, that employers added 29,000 jobs in September, consistent with earlier CBS reporting.
- NPR reports that job gains for July and August were revised down by a combined 60,000, pushing July's net job change into negative territory.
- The article specifies that financial services and government shed workers in September, while most other industries still added jobs but at a slower pace.
- Health care, previously a strong source of job growth, added 17,000 jobs in September, indicating a cooling in that sector.
- Average hourly wages in September were up 3% from a year earlier, a deceleration from August and likely below the current inflation rate, implying continued erosion of real wages.
- The unemployment rate rose to 4.2% in September from 4.1% in August, driven largely by an influx of about 485,000 additional workers into the labor force.
- The labor-force participation rate, or share of adults working or looking for work, increased by 0.2 percentage points in September.
- NPR notes that, in response to the weaker report, markets modestly rallied on the view that the Federal Reserve is now less likely to raise interest rates again at its late-October meeting, though investors still expect at least one more hike this year.
- The article notes continuing low levels of layoffs overall, even as reduced turnover makes it harder for unemployed or new entrants to find positions.
- The PBS/AP piece confirms that U.S. employers added 29,000 jobs in September 2026 and that the unemployment rate rose to 4.2% from 4.1%, matching the core figures already reported.
- It specifies that August job gains were revised to 133,000 and that combined revisions for July and August cut 60,000 jobs from prior estimates.
- The article notes that average hourly earnings in September were up 3% from a year earlier, the smallest year-over-year gain since May 2021, emphasizing the deceleration in wage growth.
- It reports that economists had expected a 90,000 increase in September payrolls, underscoring the extent to which the report underperformed forecasts.
- The story highlights immediate market reaction: S&P 500 and Nasdaq futures extended gains and the 10-year Treasury yield fell to 5.17% from 5.24% after the data release.
- The article ties the report explicitly to the political calendar, noting this is the final jobs report before the November 3, 2026 midterm elections that will determine whether Republicans retain full control of Congress.
- It adds fresh polling context from an AP-NORC survey released Thursday, October 1, 2026, showing only 17% of U.S. adults approve of President Trump's handling of the cost of living and 26% approve of his handling of the economy, both new lows.
- The piece brings in new sentiment indicators: it says the Conference Board's consumer confidence index for September fell to its lowest level since 2014 and that Glassdoor's employee confidence index hit its third record low of 2026 and its lowest reading in data back to early 2016.
- It reports that in August 2026 the average unemployed person had been out of work for more than six months, the longest average duration since February 2022, illustrating how hard it is for jobseekers to find work in a "low-hire, low-fire" market.
- The article adds qualitative detail from Glassdoor chief economist Daniel Zhao, who says employee confidence has been "continuously grinding downward" over the last year as workers grow more anxious about layoffs and AI, reinforcing the narrative of rising job insecurity.