The U.S. economy added jobs in September much more than expected, according to a long-awaited report released Thursday by the Bureau of Labor Statistics.
Nonfarm payrolls increased by 119,000 in the same month, up from 4,000 jobs in August, which was revised down. The Dow Jones consensus forecast for September was $50,000. The July total was also revised downward to 72,000, a decrease of 7,000 from the previous announcement.
In addition to major payrolls, the BLS announced that the unemployment rate rose slightly to 4.4%, the highest level since October 2021. A broader measure, which includes people not looking for work or working part-time for financial reasons, fell slightly to 8%.
Average hourly wages increased by 0.2% and 3.8% in the same month, compared to the previous month’s expectations of 0.3% and 3.7%, respectively.
The report ends a labor market data drought that began in early September and lasted through a record 44-day government shutdown. Agencies such as the BLS and the Bureau of Economic Analysis were prohibited from collecting or publishing data during the period.
This was the first BLS employment report since the August tally, released on September 5th. It was also the second time since President Trump fired then-BLS Director Erica McEnterfer on August 1, following July’s employment report, which included significant revisions from the previous month.
“September’s jobs report showed the labor market remained resilient before the shutdown, with payrolls exceeding expectations, but the situation remains uncertain as August’s jobs report has been revised to show fewer jobs and the unemployment rate is rising,” said Daniel Chao, chief economist at job site Glassdoor. “These numbers are a snapshot from two months ago and do not reflect the current situation in November.”
A “Now Hiring” sign outside the entrance of Burlington Department Store on November 19, 2025 in Miami, Florida.
Joe Radle | Getty Images
Nevertheless, stock market futures rose further following the report, while US Treasury yields mostly fell.
Traders also continue to expect the U.S. Federal Reserve will not cut rates further at its December 9-10 meeting. This will be the last jobs report Fed policymakers will receive until then. Hawkish rhetoric at the October Fed meeting contributed to the general feeling that the Fed would be on hold until the end of the year, as reflected in minutes released Wednesday.
“Even though today’s employment numbers are very negative, they are moving the market,” said Seema Shah, chief global strategist at Principal Asset Management. “Stock markets like the fact that payrolls are stronger than expected, suggesting the economy remains strong, while bond markets like the fact that unemployment is rising and wage growth is slowing, which could largely keep the case for a Fed rate cut in December.”
Overall, the report shows that the labor market entered the autumn months in roughly the same conditions as during the year. At a time of extraordinary economic upheaval caused by aggressive policy actions from President Donald Trump’s White House, companies have been reluctant to hire large numbers of new workers or lay off existing workforces at a slow but steady pace.
In a separate announcement Thursday from the Labor Department, new jobless claims totaled 220,000 for the week ending Nov. 15, down 8,000 from the previous quarter and below the consensus estimate of 227,000.
Employment growth in September came from familiar sources, with health care leading the way with 43,000 jobs, roughly in line with the past year’s pace. Bars and restaurants contributed 37,000 and social assistance added 14,000.
On the downside, the transportation and warehousing industries lost 25,000 jobs, and the federal government, which had been a major contributor to job growth, lost 3,000 jobs, resulting in a decline of 97,000 jobs for the calendar year. Professional and business services also reported a decrease of 20,000 due to a decrease of 16,000 in temporary assistance.
The household survey used to calculate the unemployment rate painted a positive picture of the labor market.
Total employment increased by 251,000 people, and the labor force rose by 470,000 to reach a new record of 171.2 million. The participation rate, which measures the percentage of the working-age population who are either working or looking for work, was 62.4, the highest level since May.
The number of full-time employees increased by 673,000, but the number of part-time employees decreased by 573,000.
The lack of a comprehensive benchmark has been a challenge for Fed officials, who lowered their benchmark interest rate in both September and October but face tougher decisions in December. Officials at the October meeting noted that it would be difficult to move forward without trusting the usual set of economic indicators, and there was a significant inclination to hold off on cutting interest rates in December, according to meeting minutes released Wednesday.
With the release of September employment numbers, the BLS is preparing for the first influx of other data in the coming months. The bureau announced Wednesday that employment statistics for October and November will be released simultaneously on Dec. 16. October’s numbers do not include customary unemployment calculations from household surveys that cannot be completed due to the shutdown.
