US Job Growth Surpasses Expectations in September; Unemployment Rate Rises to 4.4%

In September 2025, the U.S. economy added 119,000 nonfarm payroll jobs, surpassing economists' expectations of 50,000. This increase follows a revised decline of 4,000 jobs in August. The unemployment rate rose to 4.4% from 4.3% in August, attributed to 470,000 individuals entering the labor force.

Job gains were primarily concentrated in the health care sector, which added 43,000 positions, and the leisure and hospitality sector, which saw an increase of 37,000 jobs. Conversely, the transportation and warehousing sector experienced a decline of 25,000 jobs, and federal government employment continued its downward trend, decreasing by 3,000 positions.

The release of this employment report was delayed due to a 43-day federal government shutdown, the longest in U.S. history. As a result, the October employment report has been canceled, with October's nonfarm payroll data to be combined with November's figures in a report scheduled for December 16.

The Federal Reserve, which reduced its benchmark interest rate by a quarter-point to a range of 4%–4.25% in September, is closely monitoring these developments. The central bank has indicated that further rate cuts may be considered in upcoming meetings if economic conditions warrant.