US Labor Market Stable in September with Unemployment at 4.2%
The US labor market showed minimal changes in September, with nonfarm payroll employment rising by 29,000 and the unemployment rate holding steady at 4.2%, according to the US Bureau of Labor Statistics (BLS). The textile and apparel manufacturing sectors saw little fluctuation, reflecting broader stability across major industries. Manufacturing employment increased by 9,000, though it remains 72,000 higher than a recent low recorded in December 2025. Within manufacturing, machinery manufacturing saw the most significant gain, with an increase of 5,000 jobs.
The household survey revealed that the number of unemployed individuals remained unchanged at 7.1 million. The unemployment rate has hovered between 4.1% and 4.3% since March. Among different demographic groups, the unemployment rate for Black individuals rose to 7.0%, while rates for other groups, including adult men, adult women, teenagers, White individuals, Asian individuals, and Hispanic individuals, showed little change. The long-term unemployed, those jobless for 27 weeks or more, accounted for 27.1% of all unemployed individuals.
The labor force participation rate remained at 61.8%, and the employment-population ratio stayed at 59.2%, showing little net change since January. The number of people working part-time for economic reasons held steady at 4.5 million, while those outside the labor force who wanted a job remained at 5.8 million. Among those marginally attached to the labor force, the number decreased by 236,000 to 1.5 million, with discouraged workers holding steady at 414,000.
The establishment survey indicated that total nonfarm payroll employment saw a modest increase of 29,000 in September, following an average monthly gain of 45,000 over the prior 12 months. Employment in various sectors, including mining, wholesale trade, retail trade, and government, showed little change. Average hourly earnings for all employees on private nonfarm payrolls rose by 5 cents to $37.81, marking a 3.0% increase over the past year. The average workweek for all employees remained at 34.4 hours, with manufacturing holding steady at 40.6 hours.