Hiring slows in September with job growth of 29K
Oct 02, 2026 | 11:08 am ET
Description
Providers give emergency care to patients via telehealth at Dartmouth Health, based in Vermont and New Hampshire, which announced last month it would lay off 124 employees and cancel 303 positions. Nationwide, health care jobs continued to grow in September but at a lower pace as hospitals continued to seek financial stability. (Photo courtesy of Dartmouth Health)
Jobs across the United States rose by 29,000 in September, a disappointing result as recent growth was also revised down in Friday’s monthly jobs report, the last one before midterm elections.
September growth was a large dip from a strong August number that was revised down from 162,000 to 133,000 in the new report. July jobs were also revised from an increase of 21,000 to a decrease of 10,000, according to the federal Bureau of Labor Statistics monthly report.
“This is a textbook weak jobs report,” economist Kathryn Anne Edwards said on a live chat on Substack after the release.
The fact that earnings, up 3%, are not keeping up with 3.4% inflation, means “We can say pretty categorically that things got worse for workers this month,” Edwards said.
Average hourly earnings increased slightly to $37.81, up 3% from a year ago. The unemployment rate ticked up to 4.2% from 4.1% in August, but still a decrease from 4.4% in September 2025.
Speaking on Fox News, Kevin Hassett, director of the National Economic Council, tried to frame the joblessness increase as a result of a labor market that more potential workers have returned to since August.
“People are seeing the strong labor market and they’re saying, ‘Oh I need to get back in the labor force because I’m going to make so much money.’ That’s one reason why the unemployment rate just ticked in a different direction,” Hassett said.
The labor force increased by 485,000 people in September, according to the report, but that’s still a decrease of a million from September 2025. .
Black unemployment jumped 1 point to 7% for the month, though it also is down from 7.6% in September 2025.
Health care jobs led September job growth at 16,700. That’s still a slowdown from an average of 33,000 per month over the past year as hospitals continue to seek financial stability. Some health systems had layoffs last month in Vermont and New Hampshire. Government jobs dropped by 17,000, mostly in local governments.
The freight economy has been reeling from the impact of high diesel prices, and job losses have been announced in that industry. Nonetheless the federal statistics show a monthly job increase of 2,600 in September for truck transportation jobs, but a drop of 4,100 in warehousing and storage jobs.
An alternative jobs report from payroll processor ADP found a 90,000-job gain in September, with more than half of those coming gains in the Mid-Atlantic region of New Jersey, New York and Pennsylvania.
Stateline reporter Tim Henderson can be reached at [email protected].
