US Job Growth Slows as Payrolls Rise by 29,000 in September

US employers added just 29,000 jobs in September as nonfarm payroll growth remained subdued and the unemployment rate held at 4.2 percent, pointing to little movement in the labour market.

The latest figures from the US Bureau of Labor Statistics showed employment across major industries was largely unchanged during the month. Payroll growth averaged 45,000 a month over the previous 12 months.

The September increase followed substantial downward revisions to the previous two months. July payroll growth was revised from a gain of 21,000 to a decline of 10,000, while August was revised from 162,000 to 133,000. Together, the revisions reduced employment growth for July and August by 60,000 jobs compared with earlier estimates.

The number of unemployed people stood at 7.1 million in September, little changed from the previous month. The unemployment rate has remained between 4.1 percent and 4.3 percent since March.

The labour force participation rate was also unchanged at 61.8 percent, while the employment-population ratio remained at 59.2 percent. Both measures have recorded little net change since January.

Healthcare remained one of the few areas to record a clear increase, adding 17,000 jobs, although the pace was about half the industry's average monthly gain of 33,000 over the previous year. Ambulatory healthcare services added 13,000 jobs and hospitals added 12,000, while nursing and residential care facilities shed 9,000.

Construction employment increased by 11,000, broadly in line with its average monthly gain of 10,000 over the previous year. Non-residential specialty trade contractors accounted for much of the increase, adding 12,000 jobs.

Manufacturing added 9,000 jobs in September and has gained 72,000 jobs since reaching a recent low in December 2025. Employment increased in plastics and rubber products manufacturing as well as machinery manufacturing.

Financial activities, meanwhile, lost 7,000 jobs. Employment in the sector has fallen by 129,000 since its recent peak in May 2025, with insurance carriers and related activities accounting for 90,000 of the decline.

Other major industries, including retail trade, transportation and warehousing, information, professional and business services, leisure and hospitality and government, recorded little employment change during the month.

Wage growth remained modest. Average hourly earnings for private-sector employees increased by five cents, or 0.1 percent, to 37.81 US dollars in September. Over the past 12 months, average hourly earnings have risen by 3.0 percent.

For production and nonsupervisory employees, average hourly earnings increased by seven cents, or 0.2 percent, to 32.60 US dollars.

The average private-sector workweek was unchanged at 34.4 hours, while the manufacturing workweek remained at 40.6 hours.

Long-term unemployment also remained broadly stable, with 1.9 million people unemployed for at least 27 weeks. They accounted for 27.1 percent of all unemployed people.

The number of people working part time for economic reasons was little changed at 4.5 million. The group includes workers who wanted full-time employment but were working reduced hours or could not find full-time work.

Source: FSX Business News