US Payrolls Rise by 29K in September, Missing Expectations

The U.S. labor market cooled in September 2026. Nonfarm payrolls rose by 29,000, which fell short of the 90,000 jobs analysts projected. This deceleration and the downward revisions to previous months signal a softening in hiring activity compared to the growth seen earlier in the year.

Downward Revisions to Prior Months

Beyond the September figures, the U.S. Bureau of Labor Statistics (BLS) reported downward revisions to data from the preceding two months. July's job growth was revised down by 31,000, shifting the total to a loss of 10,000 jobs. August's gains were lowered by 29,000 to 133,000.

These adjustments resulted in 60,000 fewer jobs across the summer months than previously estimated. This highlights a trend of labor market cooling that is sharper than initial reports suggested.

Unemployment and Wage Growth

The unemployment rate increased to 4.2% in September from 4.1% in August. Despite the slow pace of job creation, wage growth remained positive.

Average hourly earnings for private nonfarm employees rose 0.1% during the month to $37.81. On an annual basis, this represents a 3.0% increase over the past 12 months, reflecting a tempered pace of wage appreciation for the workforce.

What the Data Means for the Labor Market

The gap between the 29,000 jobs added in September and the 90,000-job forecast from Trading Economics underscores the volatility in employment data. For policymakers and market participants, these figures are an indicator of the economy's momentum as the labor market adjusts to interest rate environments and macroeconomic shifts.