Industry Insights
Labor Market Update: What the September 2026 Jobs Report Means for Employers
The September 2026 jobs report points to a slower pace of hiring across the U.S. economy. Employers added 29,000 jobs during the month, while the unemployment rate remained relatively steady at 4.2%.
Despite slower overall job growth, several industries continued to add workers. Construction added 11,000 jobs in September, while manufacturing added 9,000. Average hourly earnings also increased 3.0% over the past year, making wages another important factor for employers to watch as they plan their workforce needs.
Watch the latest Labor Market in a Minute here and read the full transcript below.
🎥 Labor Market in a Minute - September 2026 Jobs Report
Video Transcript
How many jobs were added to the economy?
For the month of September, non-farm payroll employment increased by 29,000 jobs. For September, this was a significant decrease from the prior month. The prior two months are revised in this instance for July and August; they were combined. There was a decrease of 60,000 jobs from what was originally reported. So in summary, this month's job data was significantly below expectations.
What is this month's unemployment rate?
The unemployment rate is at 4.2%. This is a slight increase from the prior month. Job openings are at a historic 8-year low outside of the pandemic, and layoffs are historically low.
What is the inflation rate?
The Fed target rate for inflation is at 2% and the inflation rate is running 3.4% for the latest 12 months, but this is unchanged from the prior month. The Fed has two meetings left this year, and at their September meeting, they increased interest rates by 1.4%. The Fed continues to balance inflation and interest rates in the labor market and given the high inflation rate, this will be the primary consideration for the Fed to monitor and contain.
What is the status of the GDP?
GDP was at 2.5% in the first quarter and is at 2.2% in the second quarter of this year. The US economy is showing modest expansion, growing but not at a rapid pace.
How are the tariffs and other administration policies affecting the job market?
Considering the geopolitical events, the effects of the Middle East conflict continue to keep energy prices high and keep uncertainty in the economy.
What industries are adding jobs this month?
Healthcare added 17,000 jobs, construction added 11,000 jobs, manufacturing added 90,000 jobs, and financial activities had a decrease of 7,000 jobs.
