The US economy added 29,000 nonfarm jobs in September 2026, the Bureau of Labor Statistics reported on October 2, far short of the roughly 85,000 economists had forecast and leaving the unemployment rate at 4.2 percent. The Information sector, which covers software publishers, telecommunications, data processing and publishing, cut 10,000 positions in the same month, extending a decline that began over the summer. It was the final monthly jobs report before the November midterm elections. Combined downward revisions of 60,000 jobs across July and August sharpened the picture of a labor market that has lost momentum through the second half of the year. The unemployment rate ticked up from 4.1 percent in August, with 7.1 million people counted as unemployed.
- Reference period
- September 2026
- Nonfarm payroll change
- +29,000 (consensus expected ~85,000)
- Unemployment rate
- 4.2% (up from 4.1%)
- Unemployed persons
- 7.1 million
- Information sector jobs
- -10,000 (to 2.739 million)
- Average hourly earnings
- $37.81 (+5 cents MoM, +0.1%)
- Year over year wage growth
- 3.0% (down from 3.8% a year earlier)
- Two-month revision
- -60,000 (July -31k, August -29k)
- Largest private gain
- Trade, transportation and utilities +18,000
- Health care gain
- +17,000
- Government payrolls
- -17,000
- Long term unemployment
- 1.9 million (27.1% of unemployed)
- Next BLS release
- November 6, 2026 (October 2026 data)
Hiring stalls ahead of the November midterms
The 29,000 job headline number falls below the 12 month average of about 45,000 and trails the roughly 85,000 that economists surveyed by Dow Jones had expected, according to the Washington Post. Trade, transportation and utilities added 18,000 positions, while health care contributed 17,000. Construction gained 11,000, leisure and hospitality added 10,000, and manufacturing picked up 9,000. Government payrolls dropped 17,000 and financial activities shed 7,000.
Average hourly earnings for all private employees rose 5 cents, or 0.1 percent, to $37.81, the BLS Employment Situation report said. Year over year wage growth cooled to 3.0 percent, down from 3.8 percent a year earlier. The labor force participation rate held at 61.8 percent and the employment to population ratio sat at 59.2 percent.
Information sector extends its summer slide
The 10,000 job drop in Information was the second consecutive monthly decline, with payrolls falling to 2.739 million from 2.749 million in August and 2.767 million in July. The industry, which covers software publishers, telecommunications, data processing, internet publishing and other web search portals, has now lost about 28,000 jobs since June, a stretch in which the broader economy added well over 100,000 positions.
Average hourly earnings in the industry slipped to $35.50 from $35.60 the prior month, and the average workweek held at 35.5 hours. The decline stands out because the rest of the labor market has continued to add payrolls at a modest pace, leaving the tech sector as a clear drag on the headline number.
Revisions wipe out 60,000 jobs from prior months
BLS revised July payrolls down by 31,000, turning what was originally reported as a 21,000 gain into a 10,000 loss, and trimmed August by 29,000, taking that month from 162,000 to 133,000. The combined 60,000 job downward revision means the second quarter average monthly gain of about 70,000 has now given way to a third quarter average closer to 50,000, even before the September figure is included in the trend.
The revisions, which arrive with the September report, also tell a quieter story underneath the headline. The job market is not collapsing, but it is no longer the engine it was in 2023 and the first half of 2024.
What it means for workers and the Federal Reserve
For workers, the slowdown is showing up most clearly in sectors exposed to automation and software, where hiring has cooled after the pandemic era boom. Information sector payrolls are now lower than they were in late 2022, and the unemployment rate for the broader workforce has stayed in a narrow 4.1 to 4.3 percent range since March.
Long term unemployment remained elevated, with 1.9 million people out of work for 27 weeks or longer, representing 27.1 percent of all unemployed. For the Federal Reserve, the September report is the last major labor input before the November 6 to 7 FOMC meeting and may complicate the policy debate as wage growth cools toward the Fed's 3 percent target.
Primary source
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BLS Employment Situation news release (September 2026) is the source to consult for the underlying data, statement, ruling or live context.