September Job Growth Slows to 29,000 Ahead of Midterm Elections

U.S. job growth in September increased by 29,000, a disappointing figure as August and July figures were revised down in the latest Bureau of Labor Statistics report. This report, released just before midterm elections, showed weaker-than-expected growth. Economist Kathryn Anne Edwards described it as a “textbook weak jobs report” during a live chat on Substack.

A rise in average hourly earnings to $37.81, up 3% from last year, isn’t keeping up with 3.4% inflation, indicating worsening conditions for workers. The unemployment rate increased to 4.2% from 4.1% in August, though it is still lower than the 4.4% rate in September 2025.

National Economic Council Director Kevin Hassett suggested the joblessness increase was due to more individuals returning to the labor force, which grew by 485,000 in September, according to the report. Black unemployment rose to 7% but remains below the 7.6% rate from September 2025.

Health care jobs led with 16,700 new positions, although this is a slowdown from a monthly average of 33,000 over the past year. Vermont and New Hampshire recently saw layoffs in health systems. Government jobs fell by 17,000, primarily at the local level.

The freight economy, affected by high diesel prices, experienced job losses. However, truck transportation jobs increased by 2,600, while warehousing jobs decreased by 4,100. Meanwhile, an ADP report showed a 90,000-job gain in September, with significant growth in New Jersey, New York, and Pennsylvania.

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