U.S. non-farm employment growth slowed in September, unemployment rate rose to 4.2%
Quick Look
- Data from the U.S.
- Department of Labor showed that non-farm employment increased by only 29,000 in September, and the unemployment rate rose to 4.2%.
- The data for July and August were revised down by a combined 60,000.
AI-generated summary
Why It Matters
The U.S. Department of Labor releases its monthly non-farm payrolls report, which is a key indicator of the health of the U.S. labor market and directly affects the Federal Reserve's monetary policy decisions.
China News Service, Washington, October 2 (Reporter Chen Mengtong) Data released by the U.S. Department of Labor on the 2nd showed that non-farm employment in the United States increased by 29,000 in September, and the unemployment rate was 4.2%, an increase of 0.1 percentage points from August.
The U.S. Department of Labor also revised downward non-farm payroll data for July and August, with a total of 60,000 fewer jobs in the two months than previously announced data. Among them, August's employment data was revised to an increase of 133,000 jobs, a decrease of 29,000 jobs from the initial value.
Bloomberg News analysis pointed out that the number of new jobs created in the United States in September was lower than expected and wage growth slowed down, indicating that some employers are becoming more cautious in hiring intentions amid rising costs. "A weaker-than-expected jobs report should make it significantly less likely that the Fed will raise interest rates in October."
Data show that in September, the U.S. health care industry added 17,000 new jobs, the construction industry added 11,000 new jobs, the manufacturing industry added 9,000 new jobs, and the financial industry lost 7,000 jobs. Since May 2025, employment in the U.S. financial industry has decreased by 129,000, with most of the job losses coming from insurance companies and related industries.
In terms of wages, the average hourly wage of non-farm employees in the U.S. private sector rose 5 cents month-on-month to $37.81 in September, a year-on-year increase of 3.0%.
The Wall Street Journal stated that the September employment report gave Federal Reserve officials little reason to change their basic judgment on the U.S. economy, and also eliminated a potential obstacle to the Federal Reserve keeping interest rates unchanged in October.
As of press time, the Chicago Mercantile Exchange's FedWatch Tool showed that the market expected the probability that the Federal Reserve would keep federal interest rates unchanged in October to be 77.3%.
(over)
What to Watch
AI outlook — possibilities, not facts
Fed to keep federal interest rates unchanged at October monetary policy meeting
Very likely · Within weeks
Financial sector employment will continue to decline in the near term
Likely · Within months
Open Questions
- What are the underlying reasons for the continued decline in employment in the financial industry?
- Will the Fed resume raising interest rates in November or December?
- Will slower wage growth affect consumer spending and inflation expectations?
