US Economy Adds 119,000 Jobs in September, Exceeding Forecasts Despite Rising Unemployment
The U.S. economy added 119,000 jobs in September, significantly surpassing expectations, though the unemployment rate slightly increased to 4.4%, marking the highest level since October 2021.
Overview
- The U.S. economy added 119,000 jobs in September, significantly surpassing the 50,000 forecast, despite the government shutdown delaying the report's release by weeks.
- The unemployment rate increased to 4.4% in September, marking its highest level since October 2021, even as 470,000 individuals joined the labor force.
- While health care added 43,000 jobs, sectors like transportation, warehousing, and manufacturing saw losses, and federal government employment decreased by 97,000 since year-start.
- Average hourly earnings rose 0.2% to $36.67 in September, contributing to a 3.8% annual increase, while July and August job gains were revised downward.
- The job market, though adding more jobs than expected, faces strain from high interest rates and uncertainty surrounding Trump's tariff policies.
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Analysis
Center-leaning sources collectively frame the jobs report as a complex picture of resilience and fragility. While acknowledging the stronger-than-expected September job gains, they temper optimism by highlighting underlying weaknesses, such as widespread layoffs, rising unemployment duration, and the Federal Reserve's challenging position amidst inflation and employment concerns.
"The September jobs report may be backward looking but offers reassurance that the labour market wasn't crumbling before the government shutdown."
BBC News"The September employment figures suggest job growth remains firm amid concerns that the labor market was at risk of stalling."
CBS News"The US added 119,000 jobs in September, surpassing economists’ expectations amid worries of a cooling labor market."
Semafor"Overall, it looks OK: Employers added more jobs than expected that month, though the unemployment rate ticked up to 4.4 percent."
Reason"Employers hired far more workers than expected in September, defying a sharp slowdown over the summer that appeared to cool off the labor market."
ABC News"New U.S. jobless claim applications fell last week, remaining within the healthy range of recent years, according to the government’s first weekly layoffs data since before the government shut down on Oct. 1."
Associated Press"The unemployment rate rose slightly from 4.3% to 4.4%."
USA TODAY"The absence of official economic reports over the past six weeks has made it difficult to accurately assess the current state of the jobs market."
NBC News"The job market is close to stalling, with concerns about potential layoffs and a slowdown in hiring."
NPR"Economists expect to see a continuation of what was happening in the spring and summer: weak hiring but few layoffs, an awkward pairing that means Americans who have work mostly enjoy job security – but those who don’t often struggle to find employment."
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FAQ
The unemployment rate increased because 470,000 individuals joined the labor force, expanding the pool of job seekers faster than the number of jobs created, which pushed the rate up despite solid job growth.
Sectors that saw job losses in September 2025 included transportation and warehousing, manufacturing, and federal government employment, which decreased by 97,000 since the start of the year.
Average hourly earnings rose 0.2% to $36.67 in September 2025, contributing to a 3.8% annual increase.
The job market is facing strain from high interest rates and uncertainty surrounding Trump's tariff policies, which are creating economic headwinds despite stronger-than-expected job growth.
Job gains for July and August 2025 were revised downward, indicating that employment growth in those months was weaker than initially reported.
History
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