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US employers added a stronger-than-expected 119,000 jobs in September, according to a Labour Department report delayed for seven weeks by the federal government shutdown. The unemployment rate edged up to 4.4 percent, the highest since October 2021, partly because 470,000 people entered the labour force, not all of whom found work immediately.
September’s payroll gain was more than double economists’ forecast of 50,000, though revisions showed the economy actually lost 4,000 jobs in August instead of gaining 22,000. Combined revisions for July and August removed 33,000 jobs, underscoring a cooler trend than initially reported.
The release offered long-awaited clarity for businesses, investors and the Federal Reserve, which had been operating without fresh labour data during the 43-day shutdown. It comes amid uncertainty triggered by high interest rates and President Donald Trump’s sweeping tariff threats, though economic growth remained resilient through midyear.
Healthcare and social assistance led hiring with 57,000 jobs, followed by restaurants and bars (37,000), construction (19,000) and retail (14,000). Manufacturing shed 6,000 jobs — its fifth monthly decline — while the federal government lost 3,000 positions amid Trump and Elon Musk’s DOGE cost-cutting drive.
Unemployment rate: December rate cut less likely
Wage growth rose 0.2 percent month over month and 3.8 percent year over year, inching closer to the Fed’s preferred 3.5 percent pace. The solid hiring figures make a December rate cut less likely.
The September report is the last full snapshot the Fed will see before its 9–10 December meeting, where officials remain divided between prioritising inflation control and supporting sluggish hiring. The Labour Department has already said it cannot publish a complete October report due to the shutdown, and will roll partial October data into the full November release on 16 December.
