After Shutdown Delay, September Jobs Report Shows Mixed Signals

Hiring Stronger Than Expected, But Signs of Strain Remain

After a seven-week delay caused by the federal government shutdown, the Labor Department finally released September’s jobs report — and the numbers paint a mixed picture of an economy that’s still creating jobs but losing momentum.

Stronger Hiring Amid Rising Unemployment

U.S. employers added 119,000 jobs in September, more than double economists’ forecasts of 50,000. Much of the growth came from healthcare, social assistance, construction, and retail. But the unemployment rate ticked up to 4.4% — the highest since October 2021 — in part because nearly half a million people entered the labor force and not all found work immediately.

Some sectors struggled. Factories shed 6,000 jobs, and the federal government lost 3,000 positions. Wage growth rose slightly — up 0.2% from August and 3.8% year-over-year — inching closer to the pace the Federal Reserve prefers.

Revisions Paint a Cooler Picture

Despite the headline gains, revised data cast a shadow over earlier reports. The Labor Department now says the economy created 911,000 fewer jobs in the 12 months ending in March than first reported. Hiring since March has averaged just 53,000 new jobs a month — a sharp drop from the 400,000-a-month surge seen after COVID-19 lockdowns.

High interest rates and uncertainty surrounding President Trump’s tariff threats continue to weigh heavily on employers.

Fed Eyes December Meeting

Because the October jobs report can’t be completed — the shutdown prevented unemployment data collection — September’s numbers are the last full snapshot the Federal Reserve will have before its December 9–10 meeting. Policymakers remain divided on whether to cut interest rates for the third time this year.

The delayed report clears some of the fog, but with hiring slowing and uncertainty rising, the economic picture remains murky heading into winter.