September Employment Report: Hiring Remains Steady, but Growth Signals Stay Uneven
What Employers Should Take from the September Jobs Report
September's data points to a stable labor market, with unemployment at 4.2% and payroll employment up 29,000.
Labor Market Remains Stable as Hiring Activity Moderates
The U.S. labor market remained steady in September. Nonfarm payroll employment increased by 29,000 and the unemployment rate held at 4.2%.
Payroll growth remained below the 12-month average of 45,000 jobs, while labor force participation, employment and wage growth changed little. The unemployment rate has remained between 4.1% and 4.3% since March, reflecting measured labor market growth.
For employers, September's data reflects caution rather than contraction, with gains concentrated in a few sectors.
Unemployment Holds Steady
The unemployment rate remained at 4.2% in September, with approximately 7.1 million Americans unemployed.
Among major demographic groups, unemployment rose to 7.0% for Black workers. Rates for adult men, adult women, teenagers and workers who are White, Asian or Hispanic changed little.
The number of people unemployed for 27 weeks or longer was essentially unchanged at 1.9 million, accounting for 27.1% of all unemployed people in September.
The labor force participation rate remained at 61.8% and the employment-population ratio held at 59.2%. Both measures have changed little in 2026.
The number of people working part time for economic reasons remained at 4.5 million, while the number outside the labor force who wanted a job changed little at 5.8 million.
Hiring Continues at a Measured Pace
Total nonfarm payroll employment increased by 29,000 in September, compared with an average monthly gain of 45,000 over the previous year.
Employment growth remained concentrated in a handful of sectors.
Health care added 17,000 jobs, led by ambulatory health care services and hospitals. Nursing and residential care facilities lost jobs.
Construction added 11,000 jobs, driven mainly by nonresidential specialty trade contractors.
Manufacturing added 9,000 jobs and has gained 72,000 since a recent low in December 2025. September's growth was concentrated in plastics and rubber products and machinery manufacturing.
Financial activities lost 7,000 jobs. Employment remains below its May 2025 peak, with most losses among insurance carriers and related businesses.
Most other major industries saw little change, including professional and business services, retail trade, transportation and warehousing, information, social assistance, leisure and hospitality, government and wholesale trade.
Wage Growth Remains Moderate
Average hourly earnings for all private-sector employees increased by $0.05 in September to $37.81.
Over the past 12 months, average hourly earnings rose 3.0%, continuing a trend of moderating wage growth.
Average hourly earnings for production and nonsupervisory employees rose $0.07 to $32.60.
The average workweek held steady at 34.4 hours. Manufacturing hours and overtime were also unchanged.
Moderating wage growth may help ease compensation pressures and support more predictable workforce planning.
Prior Months Revised Lower
The Bureau of Labor Statistics revised July and August employment estimates lower.
July payroll employment was revised down 31,000, from a gain of 21,000 to a loss of 10,000. August growth was revised down 29,000, from 162,000 to 133,000.
Together, July and August payroll employment was revised down by 60,000.
The revisions indicate weaker job growth than initially reported.
Beacon Hill Perspective
September's report reflects a labor market that remains stable but is growing more slowly than in recent years.
Unemployment, labor force participation, employment and average hours changed little, while payroll growth remained modest and prior months were revised lower.
Health care, construction and manufacturing continued to add jobs, while most other industries saw little change.
For employers, this environment reinforces the need for flexible workforce strategies and focused hiring. Labor market conditions have eased from recent years, but September's data points to stability and measured growth rather than rapid expansion or contraction.
For Job Seekers
September's report points to a stable but selective labor market. Hiring continued, but growth was concentrated in health care, construction and manufacturing.
Job seekers can respond by:
- Target sectors with continued growth, particularly health care, construction and manufacturing.
- Connect your experience to employer priorities by showing how your skills and accomplishments address immediate business needs.
- Keep resumes, profiles and interview examples current to stay competitive in a slower hiring environment.
- Evaluate career growth, skill development and long-term potential alongside compensation.
Opportunities remain available, but success will depend on targeting the right roles, demonstrating value and staying flexible as hiring varies by industry.
