U.S. adds disappointing 29,000 jobs and unemployment ticks up to 4.2% in September

U.S. Adds disappointing 29, 000 jobs and.

Key points

• Healthcare firms created 17, 000 jobs in September, but that was barely half the 33, 000 they've went on, on average, each month for the past year.
• A Thursday poll from The Associated Press-NORC Center for Public Affairs Research finds that only 17% of U.S.
• The Labor Department documented Friday that hiring dropped from a revised 133, 000 in August.
• Hiring dropped from a revised 133, 000 in August, the Labor Department remarked.
• News Bianca Vasquez Toness, Associated Press October 1, 2026.

U.S. Adds disappointing 29, 000 jobs and unemployment ticks up to 4.2% in September. By: Paul Wiseman, Associated Press – October 2, 2026.

FILE – A support wanted sign is posted in Lansdale, Pa., Friday, April 28, 2023. (AP Photo/Matt Rourke, File).

In practice, the Labor Department documented Friday that hiring dropped from a revised 133, 000 in August. The unemployment rate rose to a still-low 4.2% from 4.1% in August. Economists had projected 90, 000 new jobs.

WASHINGTON (AP) – U.S. Employers continued a disappointing 29, 000 jobs and the unemployment rate ticked up last month, the administration documented Friday, a month before voters go to the polls in pivotal midterm elections at a time of discontent over the high cost of living and the state of the economy.

Hiring dropped from a revised 133, 000 in August, the Labor Department remarked. The unemployment rate rose to a still-low 4.2% from 4.1% in August. Economists had projected September payrolls to come in around 90, 000.

Labor Department revisions additionally shaved 60, 000 jobs off combined July and August payrolls. Average hourly wages were up just 3% last year from a year earlier, the smallest year-over-year gain since May 2021.

Notably, the new hiring data could draw the Federal Reserve's attention back to hiring and jobs, given that one of the central bank's two mandates is to seek maximum employment. Plenty of Fed office-holders have noted in recent weeks that they are primarily focused on their other mission. It is combating inflation. With the job market looking a bit weaker, the Fed may be more inclined to keep its key rate unchanged when it meets next month, rather than raise it.

Still, the unemployment rate remains low and inflation has been above the central bank's 2% target for more than five years, so the Fed's concern regarding elevated costs is still front and center.

Federal, state and local governments cut 17, 000 jobs last month. Professional and business services firms. It provide administrative and technical expertise, trimmed 9, 000 jobs.

Healthcare firms created 17, 000 jobs in September, but that was barely half the 33, 000 they've went on, on average, each month for the past year. Bradley Saunders, an economist at Capital Economics, wrote that the slowdown in healthcare hiring might reflect the Trump administration's revocation of work authorizations for 350, 000 Haitians. Construction firms went on 11, 000 jobs and manufacturers 9, 000.

Unemployment rose partly since 485, 000 residents entered the workforce and not all of them discovered jobs right away.

Notably, the U.S. Job market has proven resilient in the face of a series of shocks – trade wars, persistent inflation, high interest rates and a conflict with Iran that has driven energy rates higher. Friday's jobs report is the last one that will come out before the Nov. 3 elections that will determine whether President Donald Trump's Republicans maintain full control of Congress.

While Treasury yields moved lower, futures for the S&P 500 and Nasdaq composite continued to their gains after the data was issued. The yield on the 10-year Treasury was 5.17%, down from 5.24% a day earlier.

For context, the U.S. Job market has recovered from a dismal 2025, but ordinary Americans remain unhappy regarding the economy and the high cost of living.

Meanwhile, a Thursday poll from The Associated Press-NORC Center for Public Affairs Research finds that only 17% of U.S. Adults approve of Trump's handling of the cost of living. Just 26% approve of his handling of the economy overall, marking a new low.

U.S. Consumer confidence dropped this month to the lowest level in more than a decade, according to an index published by the Conference Board. One reason: More than 28% of respondents informed the business think tank that they expect fewer jobs to be available in six months, double the 14% who expect more.

Notably, the online jobs site Glassdoor reports that its employee confidence index, based on how workers view prospects for their own firms, dropped last month to the lowest level in records going back to the beginning of 2016, a period that includes a global pandemic. It was the index's third record low this year.

Employee confidence has been continuously grinding downward over the last year as workers grow increasingly anxious regarding everything from layoffs to AI, '' stated Glassdoor chief economist Daniel Zhao.

Notably, the public's misgivings regarding jobs partly reflect an odd feature of the current labor market: Employers aren't laying off numerous workers, but they aren't hiring plenty of either. A Labor Department measure of gross hiring – before subtracting those who quit or lose their jobs – has been stuck in a rut for more than two years.

So economists describe a low-hire, low-fire '' job market in which those who have jobs are mostly secure, but jobseekers struggle to find work. In August, the average unemployed person had been out of work for more than six months, the longest average stretch of joblessness since February 2022.

People know that being laid off is unusually costly right now, remarked Glassdoor's Zhao. They hear from their friends how long they've been out of work and had such a tough time finding a job. That does create layoffs even more scary than usual.''.

In that chilly environment, fewer workers are willing to quit their jobs. "They often feel stuck, '' Zhao remarked. "Workers aren't finding there's opportunity on the open market to find a better job – one that pays more or offers better work-life balance.''. AP Economics Writer Christopher Rugaber contributed to this report. Regarding the Author(s). Paul Wiseman, Associated Press. Economy Christopher Rugaber, Associated Press September 30, 2026. Inflation cooled slightly last month even as consumers stepped up spending.

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For now, U.S. Adds disappointing 29, 000 jobs and unemployment ticks up to 4.2% in remains the part of the story worth watching, and further updates are likely as more details are confirmed.