EL7.AI
Macro EconomyHigh Impact•2 October 2026•
1 min read

Shock in the US Labor Market: Only 29 Thousand Jobs Added in September

Key Facts

1Addition of 29 thousand jobs versus expectations of 90 thousand and a previous 133 thousand.
2Unemployment rate rose to 4.2% compared to the previous rate of 4.1%.
3Annual wage growth slowed to 3% from 3.1%, and monthly to 0.1% from 0.3%.
4Labor force participation rate increased to 61.8% from 61.6%.
Actual
+29
Forecast
+90
Previous
+133

Who added jobs

  • Education & HealthTop+20
  • Trade/Transport/Utilities+18
  • Construction+11
  • Leisure & Hospitality+10
  • Manufacturing+9
  • Other Services+6

Who lost jobs

  • GovernmentWorst−17
  • Information−10
  • Professional & Business−9
  • Financial−7
  • Mining & Logging−2

Companion indicators

Unemployment
+4.2%
from 4.1%
Participation
+61.8%
from 61.6%
Earnings (MoM)
+0.1%
from 0.3%
Earnings (YoY)
+3%
from 3.1%
◀Full details & monthly breakdown on the indicator page◀Follow all economic coverage in the EL7 news center

The US economy added only 29 thousand non-farm jobs during September, marking a sharp and surprising decline compared to the previous reading of 133 thousand jobs. This figure fell significantly short of expectations, which had pointed to the addition of 90 thousand jobs, reflecting a tangible slowdown in the pace of hiring.

This severe slowdown carries profound implications for the labor market, indicating a loss of employment momentum alongside a rise in the unemployment rate and softening wage growth. These dynamics place increasing pressure on the Federal Reserve to consider easing monetary policy, which could negatively impact the US dollar and prompt markets to reprice the interest rate trajectory. Looking ahead, the situation requires close monitoring to determine the sustainability of this weakness and its impact on broader economic growth.