WASHINGTON — U.S. employers added just 29,000 jobs in September, the Bureau of Labor Statistics reported Friday, in the last jobs report before the Nov. 3 midterm elections — and one of the weakest readings in years.
The unemployment rate ticked up to 4.2% from 4.1%, the first increase since February, according to the BLS report released at 8:30 a.m. ET.
The figure badly missed economists’ expectations. A Dow Jones consensus forecast had projected roughly 84,000 new jobs — nearly triple what employers actually added, according to the Associated Press.
Revisions deepened the gloom. July was revised to a loss of 10,000 jobs, down from an initially reported gain of 21,000, and August’s tally was cut to 133,000 from 162,000 — a combined downward revision of 60,000 jobs, the AP reported.
The composition of the report offered little comfort. Health care added 17,000 jobs, construction 11,000 and manufacturing 9,000, according to USA Today. But financial services shed 7,000 positions and has now lost 129,000 jobs since its May 2025 peak.
Wage growth also slowed: average hourly earnings rose 3% from a year earlier, the smallest year-over-year gain since May 2021, the AP reported.
The report landed amid the worst economic polling of President Donald Trump’s second term. An AP-NORC poll released Thursday found only 17% of U.S. adults approve of Trump’s handling of the cost of living, and just 26% approve of his overall economic stewardship — a new low.
Observers painted sharply different pictures. Federal Reserve Chair Kevin Warsh described the labor market as “stable,” while Indeed economist Laura Ullrich said job seekers are “stuck on the sidewalk,” according to USA Today. Glassdoor’s measure of employee confidence fell to a record low in September.
The Federal Reserve meets Oct. 27–28. Following the report, traders priced an 82% chance the Fed would hold rates steady at the October meeting, according to CME FedWatch data cited by USA Today — a sharp reversal from September, when the central bank raised rates.
Sources:
- Associated Press (syndicated via Barchart): “US adds disappointing 29,000 jobs and unemployment ticks up to 4.2% in September” — https://www.barchart.com/story/news/4925657/us-adds-disappointing-29-000-jobs-and-unemployment-ticks-up-to-4-2-in-september
- USA Today: “September 2026 jobs report: unemployment rate” (Oct. 2, 2026) — https://www.usatoday.com/story/money/economy/jobs-labor/2026/10/02/september-2026-jobs-report-unemployment-rate/91991349007/
- Investopedia: “5 Things to Know Before the Stock Market Opens” (Oct. 2, 2026) — https://www.investopedia.com/5-things-to-know-before-the-stock-market-opens-on-friday-october-2-2026-12153811