The U.S. economy added 29,000 jobs in September 2026, far fewer than the 84,000 to 90,000 economists expected, and the unemployment rate rose to 4.2%, the Bureau of Labor Statistics reported October 2. With 7.1 million Americans unemployed and wage growth slowing to 3.0%, job seekers and households head into the holiday season facing a more difficult job market.
Key Takeaways
- July payrolls were revised to a loss of 10,000 jobs, the first monthly decline reported since February.
- About 1.9 million Americans have been unemployed for 27 weeks or longer, 27.1% of all unemployed workers.
- About 4.5 million people are working part time because they cannot find full-time work or had their hours cut.
- The unemployment rate for Black workers rose to 7.0%, while rates for other major groups changed little.
- Hourly pay for production and nonsupervisory workers rose 0.2% to $32.60 in September.
- The October jobs report will be released Friday, November 6, 2026, at 8:30 a.m. ET.
A Weaker Job Market Than It First Appeared
The September report changed the picture of the labor market over the summer. The Bureau of Labor Statistics revised July from a gain of 21,000 jobs to a loss of 10,000, and lowered August from 162,000 to 133,000. Together, those two months had 60,000 fewer jobs than first reported.
Over the past 12 months, the economy has added an average of about 45,000 jobs a month. That is an improvement from the roughly 15,000-a-month pace in 2025, but it is still slow. With hiring this low, people looking for work face more competition for each opening, and employers have less reason to raise pay to attract workers.
What Job Seekers Are Facing
For the 7.1 million unemployed Americans, the main issue is how long it takes to find a job. Long-term unemployment held at 1.9 million in September, meaning more than one in four unemployed workers has been looking for six months or longer. Another 5.8 million people outside the labor force said they want a job, and 414,000 of them have stopped looking because they believe no jobs are available.
Underemployment is also a concern. About 4.5 million Americans worked part time in September because their hours were cut or they could not find full-time work. That number was little changed from August, but it means millions of workers are earning less than they want while still counted as employed.
Workers who have jobs may also be less likely to switch. When hiring is slow, workers tend to stay put instead of looking for better-paying roles, which can slow wage growth further.
Where the Jobs Are and Where They Are Not
Health care added 17,000 jobs in September, with hospitals and outpatient care still hiring, though nursing and residential care facilities cut 9,000 positions. Construction added 11,000 jobs, mostly among nonresidential specialty trade contractors. Manufacturing added 9,000 and has added 72,000 jobs since December 2025, with gains in plastics, rubber, and machinery.
Financial services kept shrinking. Financial activities employment is down 129,000 since May 2025, including 90,000 jobs lost at insurance carriers and related businesses. Information, professional and business services, and parts of government also lost jobs in September. Job seekers in those office-based fields face a tougher market than those in health care or the skilled trades.
Unemployment Rose Faster for Black Workers
The national rate of 4.2% hides differences between groups. The unemployment rate for Black workers rose to 7.0%, the only major group with a notable change in September. Rates for adult men (3.9%), adult women (3.6%), White workers (3.6%), Asian workers (2.9%), and Hispanic workers (4.7%) were little changed. Teen unemployment was 14.5%, which matters going into the holiday season, when many younger workers look for seasonal jobs.
Paychecks Are Not Keeping Up With Fuel Costs
Average hourly earnings rose 5 cents in September to $37.81, up 3.0% from a year earlier. For production and nonsupervisory workers, pay reached $32.60. The average workweek stayed at 34.4 hours, so weekly paychecks did not get a boost from longer hours.
Other costs are rising faster than pay. AAA reported that regular gasoline averaged a record $4.33 a gallon in September, and on October 4 the national average was about $1.21 higher than a year earlier, an increase of more than 38%. When wages grow 3% and fuel costs grow far faster, households have less left for other spending. The Bureau of Labor Statistics will release its Real Earnings report, which adjusts wages for inflation, on October 14.
Heading Into the Holiday Hiring Season
Holiday hiring usually adds temporary jobs in retail, warehousing, and delivery from October through December. This year, retailers and logistics companies will be deciding how many seasonal workers to hire while fuel, freight, and supply costs are high. The Institute for Supply Management’s September services survey found that employment in the sector barely returned to growth, while prices paid rose to a level last seen in July 2022.
For job seekers, the takeaway is to apply early. Seasonal openings in health care support, transportation, and retail are likely to fill quickly in a market where many people are competing for limited positions. The October jobs report on November 6 will show whether hiring picked up heading into the holidays.
FAQs
How Many Jobs Did the U.S. Add in September 2026?
The U.S. added 29,000 nonfarm payroll jobs in September 2026, according to the Bureau of Labor Statistics. Economists had expected 84,000 to 90,000.
What Is the U.S. Unemployment Rate Now?
The unemployment rate was 4.2% in September 2026, up from 4.1% in August. About 7.1 million Americans were unemployed.
Are Wages Still Rising in 2026?
Yes, but slowly. Average hourly earnings rose 0.1% in September to $37.81 and are up 3.0% from a year earlier.
Which Industries Are Hiring Right Now?
Health care, construction, and manufacturing added jobs in September. Financial activities, information, and professional and business services lost jobs.
When Is the Next Jobs Report Released?
The Bureau of Labor Statistics will release the October 2026 jobs report on Friday, November 6, 2026, at 8:30 a.m. ET.
