U.S. September Payrolls Rise Just 29,000 as Unemployment Rate Hits 4.2%

U.S. September payrolls rose by 29,000 as the unemployment rate increased to 4.2%, with previous months revised sharply lower.

U.S. nonfarm payroll employment increased by just 29,000 in September, while the unemployment rate rose to 4.2%, according to data from the U.S. Bureau of Labor Statistics. The figures pointed to weaker labor-market momentum, with employment gains also revised lower for the previous two months.

According to data shared by Wu Blockchain, September payroll growth came in well below the 90,000 market forecast cited in the post. The unemployment rate was also higher than the 4.1% expectation referenced by the account.

Previous Payroll Figures Revised Lower

The latest report included substantial downward revisions to earlier employment estimates.

August payroll growth was revised to 133,000 from 162,000. July, meanwhile, was revised from a previously reported gain to a 10,000 decline. The revisions reduced combined employment growth for July and August by 60,000 compared with earlier estimates.

The revisions provide additional context for September's weak headline figure. The BLS said total nonfarm payroll employment changed little during the month, financial following an average monthly gain of 45,000 over the previous 12 months. Employment in all major industries also changed little in September.

Unemployment Rate Rises to 4.2%

The unemployment rate increased to 4.2% in September from 4.1% in August. The number of unemployed people reached 7.1 million, while the labor-force participation rate rose to 61.8%.

The increase in unemployment remained relatively modest, with the BLS noting that the unemployment rate had stayed within a narrow range of 4.1% to 4.3% since March. That means the September report showed a combination of limited payroll growth and a small rise in the jobless rate rather than a sharp change in the unemployment rate itself.

Health Care Remains a Source of Job Growth

While overall employment growth was limited, some parts of the economy continued to add workers. Health care employment increased by 17,000 in September, although that was below its average monthly gain of 33,000 over the previous 12 months.

The BLS reported that employment also continued to rise in ambulatory health care services and hospitals. Several other major sectors recorded relatively small changes during the month.

The September employment report is scheduled to be markets followed by the October Employment Situation release on November 6, 2026, when the next monthly payroll and unemployment figures are due.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.