Jobs report September 2026:

Key Points:

• The U.S. economy added only 29,000 jobs in September, significantly below the expected 84,000, while the unemployment rate rose to 4.2%, indicating a softer labor market than anticipated.
• Revisions showed August job gains were lowered to 133,000 and July experienced a loss of 10,000 jobs, reducing the previously reported total by 60,000.
• Market reactions favored the weak jobs report, boosting stock futures and lowering Treasury yields, with investors now largely expecting the Federal Reserve to hold interest rates steady at its October meeting.
• Despite weak payroll growth, household employment increased by 406,000, labor force participation rose to 61.8%, and alternative unemployment measures declined, suggesting some underlying labor market strength.
• Wage growth slowed to a 5-year low with average hourly earnings rising just 0.1% in September, while inflation remains above the Fed’s 2% target, keeping pressure on policymakers to consider further rate hikes later in the year.