U.S. Job Growth Falls Short of Expectations in September

U.S. employers added just 29,000 jobs in September, below forecasts as inflation and energy costs weigh on hiring.

October 2, 2026 One Min Read

POLICY WIRE — Washington, D.C. — U.S. employers added only 29,000 jobs in September, falling well short of expectations and reflecting ongoing economic challenges such as rising energy costs and persistent inflation.

Economists had anticipated the creation of 90,000 new jobs for the month, according to FactSet, but the actual figure underscored a more cautious approach by businesses. The unemployment rate rose slightly to 4.2% from 4.1% in August, signaling a modest shift in labor market dynamics.

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Despite this, the labor market has shown signs of improvement compared to the previous year, when monthly job gains averaged just 10,000. Analysts are closely monitoring wage growth, which has failed to keep pace with inflation for five straight months. Meanwhile, job cuts have dropped significantly, with layoffs through September down 40% from the same period last year, according to Challenger, Gray & Christmas.

Reporting by Policy-Wire (PW)

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