Why it matters
- The Federal Reserve decides on Oct. 27–28 whether to raise rates again, and weaker hiring is a key input.
- Wage growth slowed to 3.0% from a year earlier, easing one source of inflation pressure.
- Treasury yields fell from 24-year highs, which feed into mortgage and business borrowing costs.
U.S. employers added 29,000 jobs in September, far fewer than economists expected, the Bureau of Labor Statistics said Friday. The unemployment rate rose to 4.2% from 4.1% in August.
Economists had forecast about 90,000 new jobs, according to CBS News and Trading Economics.
Revisions cut earlier gains
The bureau also lowered its estimates for the two previous months. July now shows a loss of 10,000 jobs instead of a gain of 21,000. August's gain was cut to 133,000 from 162,000. Together, the revisions removed 60,000 jobs.
Over the past 12 months, payrolls have grown by an average of 45,000 a month, the BLS said.
Wages and industries
Average hourly earnings rose 0.1% in September to $37.81, and were up 3.0% from a year earlier, the BLS said. Economists had expected a 0.3% monthly gain and 3.2% over the year, Benzinga reported.
Health care added 17,000 jobs, construction 11,000 and manufacturing 9,000. Financial activities lost 7,000. The labor force participation rate was 61.8%, and the average workweek held at 34.4 hours.
Markets react
The yield on the 10-year Treasury note fell 7 basis points to about 5.18% after the report, according to Trading Economics. It had topped 5.34% earlier in the week, its highest level since 2002. The 2-year yield, which tracks Fed expectations closely, eased 0.07 percentage point to 4.74%.
The dollar index fell 0.23% to about 101.87, Trading Economics said. U.S. stock futures rose after the data, TheStreet reported.
Before the release, fed funds futures implied a 26.4% chance of a quarter-point rate increase at the Fed's Oct. 28 decision, according to Investing.com's Fed Rate Monitor.
Sources
- U.S. Bureau of Labor Statistics, The Employment Situation, September 2026
- CBS News, Employers across the U.S. added 29,000 jobs in September
- Trading Economics, United States non farm payrolls
- Benzinga, September jobs report: economy adds 29K vs. 90K expected
- Trading Economics, U.S. 10-year Treasury yield
- Trading Economics, U.S. 2-year note yield
- Trading Economics, U.S. dollar index
- TheStreet, Stock market today, Oct. 2, 2026
- Investing.com, Fed Rate Monitor Tool