US adds 29,000 jobs in September as unemployment edges up to 4.2%

The US Bureau of Labor Statistics reported on October 2 that employers added 29,000 jobs nationwide in September 2026 and the unemployment rate was 4.2%. The payroll gain was modest, and revisions to July and August reduced previously reported hiring by a combined 60,000 jobs, giving jobseekers a weaker picture of recent hiring.

The unemployment rate rose from 4.1% in August, according to the Associated Press. BLS nevertheless described the rate as little changed: it has stayed between 4.1% and 4.3% since March. The agency counted 7.1 million unemployed people in September, also little changed over the month.

How September hiring compares with expectations

The 29,000 payroll gain was below the average monthly increase of 45,000 over the previous 12 months reported by BLS. It also fell short of economists’ forecasts cited by news outlets. AP said economists surveyed by FactSet expected 90,000 jobs; Axios cited a forecast of 84,000. Those are different reported benchmarks, rather than a single agreed forecast.

The latest figures also changed the account of the summer. BLS revised July’s estimated payroll change from a gain of 21,000 to a loss of 10,000. It cut August’s estimate from 162,000 to 133,000. Together, those revisions removed 60,000 jobs from the previously reported totals for the two months.

What the unemployment figures mean for jobseekers

The small rise in the jobless rate does not, by itself, show a broad surge in unemployment. Axios reported that labor-force participation rose by 0.2 percentage point in September and that the share of adults with jobs also ticked up. It described more people entering the labor force before finding work as a contributor to the higher unemployment rate. BLS put participation at 61.8% and the employment-population ratio at 59.2%, with little change in either measure since January.

Other measures show why a low monthly payroll gain matters to people looking for work. BLS counted 1.9 million people who had been unemployed for at least 27 weeks in September, representing 27.1% of all unemployed people. That count was essentially unchanged. The agency also counted 4.5 million people working part time for economic reasons: they wanted full-time work but had reduced hours or could not find full-time jobs. That figure changed little as well.

AP described a labor market in which employers were laying off relatively few workers but hiring few, too. It reported that, in August, the average unemployed person had been out of work for more than six months, the longest average duration since February 2022. AP also quoted Glassdoor chief economist Daniel Zhao on workers’ anxiety about layoffs and AI and jobseekers’ difficulty finding work. Those observations describe concerns beyond what the September payroll count alone can establish.

Which industries added or lost jobs in September

BLS said employment changed little across major industries overall, though some sectors moved in different directions. Health care added 17,000 jobs, below its average monthly gain of 33,000 over the preceding year. Within health care, ambulatory services added 13,000 jobs and hospitals added 12,000, while nursing and residential care lost 9,000. Those components help explain why the sector’s net increase was smaller than either of its largest gains.

Construction added 11,000 jobs, close to its prior-year monthly average of 10,000, according to BLS. Manufacturing employment rose by 9,000 and stood 72,000 above its recent low in December 2025. Financial activities moved the other way, losing 7,000 jobs in September. BLS said employment in that sector was 129,000 below its May 2025 peak, with 90,000 of the decline in insurance carriers and related activities.

Pay and hours offer another view of the month. Average hourly earnings for private nonfarm employees rose 5 cents, or 0.1%, to $37.81, BLS reported. That was 3.0% higher than a year earlier. The average private nonfarm workweek held at 34.4 hours. These national averages do not show how pay or available hours changed for individual workers or in particular local areas.

When the next US jobs report is due

The next Employment Situation report, covering October, is scheduled for November 6 at 8:30 a.m. Eastern, according to BLS. It will provide another monthly reading and may revise the September estimate. For now, the report establishes slower payroll growth and weaker revised summer figures, while the unemployment rate remains within the narrow range recorded since March. It does not establish the cause of the slowdown or, on its own, the direction of the wider economy.