Payroll growth cools
Jobs growth
Total nonfarm payrolls grew by 29,000 in September, below the 45,000 average monthly gain over the past year and well short of the roughly 90,000 economists expected. Reuters noted that payrolls tend to lag when Labor Day falls late in the month, as it did this year, and layoffs remain low.
Top industries
Health care led with 17,000 new jobs, roughly half its 12-month average, as ambulatory care added 13,000 and hospitals 12,000 while nursing and residential care facilities lost 9,000. Construction rose 11,000, with nonresidential specialty trade contractors up 12,000. Manufacturing added 9,000 and is up 72,000 since its low point in December 2025, with plastics and rubber products and machinery each gaining nearly 5,000.
Financial activities slipped 7,000 and is down 129,000 since May 2025, mostly in insurance carriers, and information shed 10,000. The BLS described changes in all major industries as small compared to August, when food services and local government education drove the gain. For employers across light industrial and professional white-collar functions, hiring is holding up in production and skilled trades while office-based sectors stay soft.
Unemployment
The unemployment rate rose slightly to 4.2% in September from 4.1% in August, and the number of unemployed people was little changed at 7.1 million. The rate has stayed between 4.1% and 4.3% since March. Long-term unemployment, those out of work for 27 weeks or more, held at 1.9 million, or 27.1% of everyone unemployed.
Wages
Average hourly earnings rose 5 cents, or 0.1%, to $37.81 in September—a smaller gain than August's 10 cents—and are up 3.0% over the past year. Production and nonsupervisory employees saw a 7-cent increase to $32.60 an hour. Even with pay growth cooling, employers are still competing on wages to keep talent.
Work week
The average workweek held at 34.4 hours. Manufacturing hours stayed at 40.6, and overtime held at 3.0 hours.
Temporary job trends
Temporary help services lost 10,900 jobs in September, ending a streak of monthly gains. Staffing Industry Analysts reports that temporary help added about 68,100 jobs from January through August, or roughly 8,500 per month, a reversal of the declines that marked 2023 through 2025. Weekly SIA and Bullhorn data showed staffing hours worked were up 7% year-over-year in the week ending September 5, which points to steady underlying demand. Employers that use flexible staffing to test demand before committing to permanent headcount may lean on it more as the outlook gets murkier.
Labor force participation
Labor force participation edged up to 61.8% in September and has shown little net change since January, while the employment-population ratio held at 59.2%. The number of people who want a job but aren't counted in the labor force stayed near 5.8 million, though those marginally attached fell by 236,000 to 1.5 million. Discouraged workers numbered 414,000, and the count of those working part-time for economic reasons held near 4.5 million.
Put together, slightly more people are re-engaging with the job market, even as hiring has fallen below the 50,000 to 80,000 jobs per month economists say is needed to keep pace with working-age population growth. Candidates still weigh pay, schedule flexibility, and growth paths before saying yes.
What it means going forward
BLS revised July down by 31,000 to a loss of 10,000 and August down by 29,000 to a gain of 133,000, leaving the two months 60,000 lower than first reported. A rising jobless rate, softer wage growth, and downward revisions show that momentum is fading, though economists see no sign of broad layoffs. Reuters reported that many expect higher energy prices and strained supply chains tied to the conflict with Iran to begin pressing on the labor market by year's end and into 2027. With the fourth-quarter hiring season ahead, employers have reason to plan early. Whether that means building a bench of flexible talent, revisiting pay bands, or lining up seasonal help, Spherion's local teams track these shifts every month and can help turn the data into a hiring plan that works.
Sources: Bureau of Labor Statistics, Staffing Industry Analysts, NBC News, Reuters, Yahoo Finance
