US employers added 29,000 jobs in September 2026, according to the jobs report released on Friday 2 October. The Unemployment Rate rose to 4.2%, from 4.1% in August.
Hiring came in well below the 90,000 jobs forecast in a Reuters poll of economists. The same report cut a combined 60,000 jobs from July and August.
What did the September 2026 jobs report show? US payrolls rose by 29,000 jobs in September, while the Unemployment Rate rose to 4.2%. Both figures were weaker than in August.
Hiring fell short of the 90,000 jobs forecast in a Reuters poll of economists.
July and August were revised down by a combined 60,000 jobs. July now shows a loss of 10,000.
The Federal Reserve raised interest rates in September. After the report, Reuters put the chance of another rise in October at about one in four. That reading comes from futures contracts that price the Fed Funds Rate.
What the September 2026 jobs report showed
The jobs report, officially the Employment Situation, comes from the Bureau of Labor Statistics (BLS). Its headline figure is the monthly change in Nonfarm Payrolls, the number of paid jobs at US employers outside farming.
Payrolls rose by 29,000 in September. That compares with a revised gain of 133,000 in August. Over the prior 12 months, from September 2025 to August 2026, payrolls rose an average of 45,000 a month.
The BLS said payrolls "changed little" in September. Economists polled by Reuters had expected 90,000, according to a Reuters report on 2 October.
The Unemployment Rate comes from a separate survey of households. It rose to 4.2% from 4.1%. That means 7.1 million people were out of work and looking for a job. The rate has stayed between 4.1% and 4.3% since March.
Hiring over the past five years
Source: BLS via FRED; YX Insights
The chart shows the change in payrolls each month for the past five years. Hiring averaged 377,000 a month in 2022. It slowed to an average of 10,000 a month in 2025.
In the first nine months of 2026, the average was 68,000. Payrolls fell in seven of the 21 months since January 2025. From September to December 2025, they fell by a combined 40,000.
Jobs by industry, pay and hours
By industry, health care added 17,000 jobs in September. That is about half its average gain of 33,000 a month over the prior 12 months. Construction added 11,000 jobs and manufacturing 9,000. Financial activities lost 7,000.
In total, private employers added 46,000 jobs, while government cut 17,000.
Average hourly earnings rose 5 cents, or 0.1%, to $37.81. They were 3.0% higher than a year earlier.
Prices rose faster. The Consumer Price Index rose 3.4% in the year to August, the latest month published. On those figures, average pay bought slightly less than a year before.
Other signs were steadier. The share of people aged 16 and over who were working or looking for work rose to 61.8%, from 61.6%. The average workweek stayed at 34.4 hours.
Revisions to July and August
Each monthly figure is revised in the next two reports, as more employers reply. We explain why in Why Economic Data Gets Revised.
Source: BLS via ALFRED; YX Insights
The BLS cut July by 31,000, from a gain of 21,000 to a loss of 10,000. It cut August by 29,000, from 162,000 to 133,000. Together, July and August now show 60,000 fewer jobs than reported a month earlier.
With the revisions, payrolls rose an average of 51,000 a month from July to September.
How markets reacted
The figures below compare 2 October with 1 October. They use closing levels unless stated.
2-year Treasury yield: up 0.05 points to 4.83%.
10-year Treasury yield: up 0.04 points to 5.28%.
SPY (the S&P 500 ETF): up 0.7% to $769.64.
EUR/USD: up 0.2% to 1.1259 dollars per euro, at the noon rate in New York. A higher rate means a weaker dollar.
Yields moved the other way at first. Shortly after the release, Reuters reported the 2-year yield down 0.07 points at 4.716%.
Fed Funds Futures are contracts that price where the Fed Funds Rate will be. We explain them in What Are Fed Funds Futures?
On the afternoon of 2 October, Reuters reported about a one-in-four chance of a rate rise in October. It cited the CME FedWatch tool, which turns those prices into odds. For December, Reuters described "an overwhelmingly high probability" of a rise.
What it means for the Fed
The Federal Open Market Committee (FOMC) sets US interest rates. On 16 September, it raised the target range for the Fed Funds Rate by 0.25 points, to 3.75% to 4%. The vote was 12 to 0. The statement said "the unemployment rate has changed little" and "Inflation remains elevated."
In the Summary of Economic Projections released that day, officials' median projection for the Unemployment Rate at the end of 2026 was 4.1%. September's 4.2% is above that.
Officials also projected the Fed Funds Rate. Their median for the end of 2026 was 4.1%. That is above today's range of 3.75% to 4%, so the median projection implies another rise by the end of 2026.
Governor Christopher Waller spoke on 8 October. He said the jobs report showed "the labor market continued to be solid and stable in September". He added: "Overall, the new data reinforce my view that the labor market is stable and inflation is too high."
What to watch next
14 October: the Consumer Price Index for September, from the BLS.
27 and 28 October: the next FOMC meeting. The decision comes on 28 October.
6 November: the October jobs report, at 8:30 in the morning, Eastern time.
September's report showed hiring close to a standstill, with the two months before revised down. Unemployment edged up, but it stayed within the narrow range it has held since March.
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Common questions about the September 2026 jobs report
How many jobs did the US add in September 2026?
The US added 29,000 jobs in September 2026, according to the Bureau of Labor Statistics report released on 2 October. That was below the 90,000 forecast in a Reuters poll of economists. The same report revised July and August down by a combined 60,000 jobs.
What was the US Unemployment Rate in September 2026?
The US Unemployment Rate was 4.2% in September 2026, up from 4.1% in August. About 7.1 million people were out of work and looking for a job. The rate has stayed between 4.1% and 4.3% since March 2026, according to the Bureau of Labor Statistics.
When is the next US jobs report?
The next US jobs report, for October 2026, is due on Friday 6 November 2026 at 8:30 in the morning, Eastern time. The Bureau of Labor Statistics publishes it, usually on the first Friday of the month. It will also revise the August and September payroll figures.
DISCLAIMER: This article is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.