US jobs data comes in lower than expected

Oct 3, 2026

Employment in the United States grew by 29,000 jobs in September, missing analysts' expectations significantly, with the unemployment rate rising slightly to 4.2 percent, government data showed on Friday. Adding to the weak data, the Bureau of Labor Statistics (BLS) also revised down job figures for July and August by a combined 60,000 jobs, the department said in a statement. The revision to July's data showed that the world's largest economy lost jobs that month, as opposed to posting a gain of 21,000 as previously reported. The data comes ahead of key midterm elections in November where US President Donald Trump's Republican Party is facing a stern test over his handling of the economy. Analysts polled by Dow Jones Newswires and the Wall Street Journal had expected the US economy to add 84,000 jobs in September. Employment in most major sectors was largely unchanged, the BLS reported, with health care posting notable gains of 17,000. The sector has propped up the labour market in the United States in the last year, as an ageing population requires more care in hospitals and at home. Still, September's gains in the sector were slower than its average monthly gain of 33,000 over the last year. The financial sector continued its downward slide, losing 7,000 jobs in September and bringing its overall slump from a recent peak in May 2025 to 129,000. Most of the losses in that sector have been among insurance companies. Average hourly earnings for all employees were up 3.0 percent, the BLS said, with wages continuing to lag behind stubbornly high inflation -- meaning most workers are seeing real wage losses. Democratic Senator Elizabeth Warren seized on the data to criticize Trump's performance since taking office last year. "Paychecks are growing at their slowest rate in nearly seven years, outside of the Covid-19 pandemic," she said in a statement. "Since the start of Trump's war, real wages have fallen 0.7 percent as his failed agenda keeps pushing prices up," she said, referring to the US war against Iran launched in late February. The conflict has plunged the Middle East into violence and sent global energy prices skyrocketing, as Tehran's retaliatory action has targeted Washington's regional allies and choked a key trading route. The data comes after the US Federal Reserve -- which has a dual mandate to maintain inflation at a long-term two-percent target while ensuring maximum employment -- raised interest rates last month to address high prices. (AFP) Edited by Robert Kemp

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