US Economy Adds Meager 29K Jobs in September, Unemployment Rises

The US economy added just 29,000 jobs in September, significantly below the expected 84,000 jobs. The unemployment rate rose to 4.2% from 4.1%, according to the Labor Department.

Revisions showed employers added 60,000 fewer jobs in July and August than initially estimated, indicating a less robust summer job market. Average hourly earnings for private-sector workers increased by just 0.1%, or 5 cents, in September, falling short of the 3.2% consensus forecast.

Healthcare and construction sectors were among the few bright spots, adding 17,000 and 11,000 positions respectively. However, government employment continued to decline, erasing 129,000 financial-sector jobs since May 2025.

The disappointing report has raised concerns about the Federal Reserve's inflation fight and its impact on American workers. With the midterm elections approaching in November, policymakers will face pressure to address cost-of-living issues.