The US economy added far fewer jobs than expected in September, with hiring slowing sharply across most industries and wage growth falling to a five-year low.
Nonfarm payrolls rose by just 29,000 in September, well below the 84,000 economists had forecast and below the average monthly gain of 45,000 over the prior 12 months.
Sector gains and losses:
Health care led all sectors with 17,000 jobs added, though that was slower than its 12-month average of 33,000 per month; gains were concentrated in ambulatory health care services and hospitals.
Construction added 11,000 jobs, in line with its 12-month average.
Manufacturing added 9,000 jobs and is up 72,000 since a recent low in December 2025.
Government employment fell by 17,000; temporary help services lost 11,000; information services lost 10,000; and financial activities shed 7,000 jobs, extending a decline of 129,000 since a peak in May 2025.
Unemployment increased to 4.2%:
Long-term unemployment held essentially unchanged at 1.9 million, accounting for 27.1% of all unemployed people.
The labor force participation rate edged up to 61.8%, its highest since May, as the labor force grew by 485,000.
Wages and workweek:
Average hourly earnings rose just 5 cents, or 0.1%, to $37.81, putting the 12-month gain at 3.0%, the lowest since May 2021.
September marks the sixth consecutive month wages have tracked below inflation. The average workweek held at 34.4 hours.
Prior month revisions:
July was revised down by 31,000, from +21,000 to -10,000.
August was revised down by 29,000, from 162,000 to 133,000. Combined, the revisions erased 60,000 jobs from prior reports.
Americans are frustrated by the lack of opportunities right now. Wage growth fell to a new five-year low and is being wiped out entirely by inflation. That stings heading into the holidays."
Read more via BLS, CNBC, NBC News
Private employers added 90,000 jobs in September, the most in three months, topping expectations of 75,000. Hiring accelerated for the first time since May.
Education and health services led all sectors with 55,000 jobs added, accounting for more than half the month's total gain.
Leisure and hospitality added 22,000 jobs; construction added 15,000; manufacturing added 17,000.
Financial activities lost 16,000 jobs; professional and business services lost 11,000.
Regional and size breakdown:
The Northeast drove regional gains, adding 56,000 jobs, with the Mid-Atlantic alone accounting for 47,000.
The South added 11,000; the West added 17,000; the Midwest added just 5,000.
Medium-sized establishments (50 to 499 employees) accounted for the bulk of hiring, adding 54,000 jobs.
Pay growth:
Base pay for all private-sector workers rose 3.2% year over year; gross pay was up 4.7%.
Job-changers saw gross pay grow 7.3% year over year, compared to 4.4% for job-stayers.
Base pay growth was little changed month over month; job-stayers saw 3.0% growth, job-changers 4.8%.
Note: The August jobs total was revised down slightly, from 38,000 to 36,000.
It's a strong report. After a three-month slowdown, job creation rebounded and pay growth remained solid."
Read more via ADP
The August JOLTS report showed little movement in either direction, with job openings, hires, and separations all largely unchanged.
Job openings edged down to 7.1 million (a rate of 4.3%) in August, from a revised 7.3 million in July.
Hires were little changed at 5.2 million, a rate of 3.3%, with no meaningful movement across industries.
The quits rate held at 1.9% for the month; quits fell in wholesale trade and state and local government education, while rising in nondurable goods manufacturing and private educational services.
Layoffs and discharges were essentially unchanged at 1.6 million, a rate of 1.0%.
July job openings were revised up by 64,000 to 7.3 million; hires were revised up by 92,000 to 5.1 million; total separations were revised up by 56,000 to 5.1 million.
A quarterly survey of more than 120 economists and labor market experts found growing consensus that AI's near-term wage impact will fall hardest on degree-holding workers, not those without college credentials.
A diffusion index measuring economists' views on AI-driven displacement rose to 55.6 for college-educated workers, signaling a slight but noticeable sense that AI displacement risk has increased for that group; the comparable reading for non-college-educated workers was a near-neutral 48.1.
Panelists expect more downward pressure on the median real wages of college-educated workers over the next 12 months than they did last quarter; the diffusion index on that question fell from 47.3 to 42.4, the sharpest quarter-over-quarter move in the survey's history.
The panel expects no meaningful AI wage pressure in either direction for non-college-educated workers.
On the broader labor market, panelists expect unemployment to hold near 4.15% through September, drifting up gradually to 4.32% by next year.
Nearly a third of panelists expect AI to deliver a substantial or transformative productivity boost over the next three years, up from 29% last quarter.
Read more via Indeed Hiring Lab
US financial executives remained broadly optimistic in the third quarter, though confidence slipped slightly and small firms reported growing strain.
The average Q3 economic confidence rating among CFOs was 60.3 out of 100, down from 60.6 in Q2 and 62.7 a year earlier, according to a quarterly survey by the Federal Reserve banks of Richmond and Atlanta and Duke University.
Hiring outlooks improved year over year: 57.8% of CFOs said they were able to hire replacements, up from 53.7% in 2025, and 37.3% said they were hiring for new positions, up from 34.5%.
A growing share of firms reported financing challenges and increased liquidity needs, in some cases leading to workforce reductions.
The confidence gap between large and small firms widened; 20% of small firms reported financial constraints preventing them from covering costs or pursuing new opportunities, compared to roughly 10% of large firms.
Where there are challenges, they are most pronounced for small or financially constrained firms."
Read more via Staffing Industry Analysts
Surging stock market wealth has accelerated retirements among older workers, with potential consequences for the labor market.
The labor force participation rate for workers 55 and older has dropped from 38.6% to 37.2% since August 2024, according to BLS data.
Economists describe participation among older workers as "collapsing," due in part to a "wealth effect" from ballooning stock portfolios.
The S&P 500 returned 26% in 2023, 25% in 2024, and 18% in 2025; it is up roughly 16% so far in 2026.
Household net worth hit $195.9 trillion in Q2 2026, up $12.8 trillion in a single quarter, the largest such gain on record since 2000.
Economists note that older-worker exits have helped keep unemployment relatively low by creating space for job seekers, but a stock market correction could reverse the trend and push some retirees back into the labor force.
If people weren't feeling confident enough that they could afford to retire, they wouldn't — and we'd see a very different story in the data."
Read more via CNBC
Demand from data centers, reshoring, and an aging workforce has pushed the US skilled-trades shortage to an estimated 1.3 million workers, according to labor market analytics firm Lightcast.
Skilled-trade workers account for roughly 9% of the US workforce, or about 20 million jobs, with more than two million openings annually.
There are roughly three openings for every person with relevant training.
Data centers alone have added a net 315,000 skilled-trade workers over the last five years.
More than a quarter of skilled-trade workers are 55 or older; retirements already account for about 40% of annual job openings.
AI's infrastructure demands have created a hiring surge for welders, electricians, HVAC technicians, and other trades workers, but the long-term outlook depends on whether public opposition to data centers continues to grow.
Every 100MW of new data center development creates roughly 1,300 local jobs, generating approximately $110 million in annual wages, according to research from Cushman & Wakefield.
Job postings for welders and pipefitters are up 164% year over year; the mean minimum salary for data center jobs has spiked 125.1% to nearly $208,000, though that figure is heavily skewed by high-end engineering roles, according to ZipRecruiter.
At least 75 data center projects worth roughly $130 billion have been blocked or delayed this year as public opposition spreads; 70% of Americans oppose a data center in their local area, according to Gallup.
Texas Gov. Greg Abbott issued a data center grid approval moratorium; New York Gov. Kathy Hochul implemented the first statewide ban on new data centers.
Experts say existing projects already underway will sustain near-term demand for trades workers, but a prolonged permitting freeze would eventually reduce hiring with a lag.
The clean energy sector employed nearly one million people across Europe in 2023, but a shortage of skilled workers threatens to slow the transition, according to a European Environment Agency report.
Wind was the largest employer at 273,500 direct jobs; solar PV was second at 227,300, with batteries the smallest but fastest-growing sector, up 35% between 2010 and 2023.
The most widespread gaps are in building technicians, plumbers and pipefitters, electrical professionals, and construction laborers.
Solar and wind industries could each employ more than 500,000 workers by 2030, roughly double today's headcount.
Women make up just 14% of the heat pump workforce and around 10% of construction roles; workers aged 15 to 24 account for only 6% to 7% of the wind, solar, and heat pump workforce.
The hardest-to-fill jobs are also the least attractive: heat pump wages run 40% lower than in wind, the best-paid sector, with construction roles carrying the highest self-employment rates and greatest exposure to extreme temperatures.
Read more via IO+
France: Public sector workers including healthcare workers, firefighters, and teachers went on strike and students blockaded schools on September 29, protesting planned budget cuts ahead of the government's 2027 budget presentation — with union leaders giving the government 48 hours to reverse the cuts before deciding on further action. (Reuters)
Germany: IG Metall, Germany's largest labor union, is seeking a 5% wage increase for roughly 3.7 million workers in the metal and electric parts industries, with negotiations set to begin in October. Employers pushed back immediately saying it doesn't consider how badly German industry is struggling. (Bloomberg)
Spain: Airbus workers in Spain voted to approve a deal ending months of intermittent strike action, with 87% of the workforce participating in the referendum. The agreement includes inflation-linked wage increases, restored purchasing power, holiday flexibility, and a return to 40% remote work. Strike action had begun in July over sub-inflation pay rises and tighter attendance requirements. (Reuters)
Switzerland: Switzerland's upper house backed a proposed levy of at least 2,000 francs ($2,400) per foreign worker hired by companies, to be triggered if immigration, unemployment, or welfare recipients breach certain thresholds. The tax is part of a broader package of accords governing Switzerland's relationship with the EU and still requires approval from the lower house and a national referendum. (Bloomberg)
