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US Job Growth September Numbers Show Sharp Deceleration
Jobs across the United States rose by 29,000 in September, a disappointing result as recent growth was also revised down in Friday’s monthly jobs report, the last one before midterm elections. September growth was a large dip from a strong…
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Key points
- U.S. job growth slowed sharply in September, adding only 29,000 jobs.
- The national unemployment rate ticked up slightly to 4.2 percent.
- Wages grew by 3 percent, failing to keep pace with the 3.4 percent inflation rate.
NewsWK — The latest federal labor report shows a sharp deceleration in hiring, with U.S. employers adding only 29,000 jobs in September. This disappointing figure, paired with downward revisions to previous months, highlights a growing US hiring slowdown ahead of the upcoming midterm elections.
Why it matters
Rising unemployment and lagging wages directly affect household budgets. When inflation outpaces wage growth, families struggle to pay for basic necessities. Meanwhile, local government cuts and regional healthcare layoffs further strain community resources.
How did the September jobs report impact workers?
The latest data reveals that American workers are losing ground as inflation continues to outpace wage growth. While average hourly earnings rose to $37.81, this 3% increase fell short of the 3.4% inflation rate. Consequently, household purchasing power declined during the month as living costs rose.
Economist Kathryn Anne Edwards described the release as a “textbook weak jobs report.” The federal report also adjusted previous job numbers downward, including:
- August figures fell from 162,000 to 133,000 jobs.
- July figures dropped from a 21,000 gain to a 10,000 loss.
Additionally, the US unemployment rate ticked up to 4.2% from 4.1% in August. Black unemployment rose to 7%. National Economic Council Director Kevin Hassett noted that 485,000 people re-entered the labor force. Still, the total labor force remains down one million workers from last year.
Which industries experienced the biggest shifts?
Employment trends varied across sectors, with healthcare leading the modest gains while government and warehousing saw losses. Although healthcare added 16,700 jobs, this represents a major drop from its yearly average. Meanwhile, local governments trimmed payrolls, and high fuel costs pressured the freight sector.
How did the US hiring slowdown affect healthcare and transport?
The broader cooling trend directly impacted regional employers, leading to notable staff reductions in medical services. For instance, the Dartmouth Health layoffs Vermont New Hampshire resulted in 124 job cuts and 303 eliminated positions. Similarly, the transportation sector lost 4,100 warehousing jobs but added 2,600 trucking positions.
Meanwhile, payroll processor ADP reported an alternative gain of 90,000 private-sector jobs, with over half in the Mid-Atlantic region.
This article was produced with the assistance of AI and reviewed by our editorial team.
Sources
Related: US Job Growth June Data Signals Sharp Slowdown Across the Country
Related: US Employers Cut 23,000 Jobs in July as Small Businesses Strain Under High Costs
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