US Job Growth Slows Sharply in September
US nonfarm payrolls rose by only 29,000 in September, marking a significant slowdown as unemployment holds steady at 4.2 per cent.
The United States labor market experienced a significant slowdown in September, as new data revealed a much smaller increase in employment than expected. According to the latest report from the US Bureau of Labor Statistics (BLS), nonfarm payroll employment rose by a mere 29,000 during the month, a figure that falls well below the monthly average of 45,000 seen over the previous year.
Unemployment Rate Holds Steady
Despite the deceleration in job creation, the unemployment rate remained unchanged at 4.2 per cent. The total number of unemployed individuals saw little movement, standing at 7.1 million for the month. Data from the BLS indicates that the unemployment rate has largely fluctuated within a tight margin of 4.1 per cent to 4.3 per cent since March.
Downward Revisions Impact Totals
The September data was further complicated by significant downward revisions to previous months. The employment gains for July and August were adjusted significantly lower:
- July: Revised down to -10,000 from an initial +21,000.
- August: Revised down to +133,000 from an initial +162,000.
Sector Performance: Healthcare and Construction
While the overall market slowed, certain sectors showed varying levels of movement:
- Healthcare: Continued its upward trend by adding 17,000 jobs, though this remains slower than the 12-month average gain of 33,000.
- Construction: Saw a modest increase of 11,000 jobs, slightly above its 12-month average of 10,000.
- Manufacturing: Added 9,000 jobs, bringing its total gains to 72,000 since the low point in December 2025.
- Financial Activities: This sector faced a decline, losing 7,000 jobs in September. This contributes to a total loss of 129,000 jobs in the sector since May 2025, largely driven by losses in insurance-related activities.
Wages and Labor Participation
Regarding compensation, average hourly earnings for private nonfarm payroll employees rose by 0.1 per cent (5 cents) to reach USD 37.81 in September. Over the last 12 months, these earnings have grown by 3.0 per cent.
Other key labor metrics remained stable:
- The average workweek stood at 34.4 hours.
- The labour force participation rate remained at 61.8 per cent.
- The employment-population ratio was recorded at 59.2 per cent.
- Part-time employment for economic reasons remained steady at 4.5 million people.