US employers added 29,000 jobs in September 2026, and the unemployment rate was 4.2 per cent, the Bureau of Labor Statistics said on 2 October. The figures arrived about two weeks after the Federal Reserve raised its policy rate. Here are the official numbers, with the dates that come next.
What the jobs report says
The Bureau says both payroll employment and the unemployment rate changed little in September. Over the previous 12 months, payrolls grew by an average of 45,000 a month. Unemployment has stayed between 4.1 and 4.3 per cent since March, and 7.1 million people were counted as unemployed in September. The labour force participation rate was 61.8 per cent and the employment-population ratio 59.2 per cent.
Other household figures moved little. About 1.9 million people had been jobless for 27 weeks or more, 27.1 per cent of all unemployed people. Some 4.5 million were working part time because their hours had been cut or they could not find full-time work. The number of people who want a job but had stopped looking fell by 236,000 to 1.5 million, and the Bureau counted 414,000 discouraged workers.
By sector, health care added 17,000 jobs, construction 11,000 and manufacturing 9,000, which the Bureau says leaves factory employment up 72,000 since a low in December 2025. Financial activities lost 7,000. The Bureau notes that financial activities employment is down by 129,000 from a peak in May 2025, most of that in insurance carriers and related work.
Pay data came with it. Average hourly pay for private-sector employees rose 5 cents, or 0.1 per cent, to 37.81 dollars, and have risen 3.0 per cent over 12 months. The average work week held at 34.4 hours.
The revisions
The earlier months were cut. July was revised down by 31,000, from a gain of 21,000 to a loss of 10,000. August was revised down by 29,000, from 162,000 to 133,000. Together, July and August now show 60,000 fewer jobs than first reported. The Bureau says monthly revisions come from additional reports from businesses and government agencies and from recalculated seasonal factors.
What the Fed has said
On 16 September 2026 the Federal Open Market Committee voted 12 to 0 to raise its target range for the federal funds rate by a quarter of a percentage point, to 3.75 to 4 per cent. Its statement said economic activity is expanding at a solid pace and that job gains have kept pace with the workforce. It also said inflation remains elevated and that the rate rise will support a timelier return to the 2 per cent goal.
The Fed met before this jobs report came out. We are not drawing a conclusion about what the report means for the next decision, because the Fed has not said, and we do not predict rates. The statement also says the Committee is continuing its policy of maintaining ample reserves in the banking system.
Dates ahead
The Fed's calendar lists the next policy meeting for 27 and 28 October 2026. The Fed says minutes of regular meetings come out three weeks after the policy decision, which puts the September minutes at about 7 October. The Bureau of Labor Statistics will publish the October jobs report on Friday, 6 November 2026, at 8:30 am Eastern, which is 7:00 pm in India. The last scheduled Fed meeting of 2026 follows on 8 and 9 December.
Why Indian readers may care
The Reserve Bank of India's August resolution described a stronger US dollar, supported by high yields and what it called a hawkish tone from the Federal Reserve. The RBI's own committee is meeting this week, and we have set out what to watch in our explainer on the October meeting. The Fed and the RBI answer to different economies, and each decides on its own.
For recent payments news at home, see our report on the UPI merchant fee starting on 15 October. This is information, not advice.
