The latest U.S. jobs report, released today by the Bureau of Labor Statistics, has sent mixed signals through the economy: while 119,000 new jobs were added in September, the unemployment rate ticked up to 4.4%, its highest level in over a year. The data paints a picture of a labor market that’s still growing, but at a noticeably slower pace—and with some worrying signs beneath the surface.
Job Growth Beats Expectations, But Revisions Tell a Different Story
Economists had forecasted a modest gain of 50,000 jobs for September, so the actual figure of 119,000 came as a welcome surprise. Sectors like
health care, food services, and social assistance led the way, with health care alone adding 43,000 jobs—right in line with its average monthly gains over the past year. Food services and drinking places contributed another 37,000 jobs, while social assistance roles grew by 14,000.
However, the report also revealed that
previous months’ job gains were revised downward. July’s total was cut by 7,000 jobs, and August’s by a significant 26,000, turning what was initially reported as a gain into a loss for that month. These revisions mean that the labor market’s momentum may be weaker than it first appears.
Unemployment Rate Rises, Labor Force Participation Stagnates
The
unemployment rate rose to 4.4% in September, up from
4.3% in August and
4.2% in July. That’s a notable increase from the 50-year low of
3.4% seen in April 2023, and it means about 7.6 million Americans are now counted as unemployed—up from 6.9 million a year ago.
Meanwhile, the
labor force participation rate—the share of working-age Americans either working or actively looking for work—remained stuck at
62.4%, showing little change over the month or the year. The
employment-population ratio also held steady at
59.7%, but is down 0.4 percentage points from a year ago.
Where the Jobs Are (and Aren’t)
While some industries are still hiring, others are feeling the pinch:
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Health care: +43,000 jobs (ambulatory services and hospitals saw the biggest gains)
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Food services and drinking places: +37,000 jobs
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Social assistance: +14,000 jobs (especially in individual and family services)
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Transportation and warehousing: -25,000 jobs (notably in warehousing, storage, and couriers)
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Federal government: Job losses reported
Small business owners are also reporting fewer job openings, though demand for workers remains solid in some sectors.
Wages and Job Openings: Cooling, But Not Collapsing
Wage growth has slowed compared to last year. For the 12 months ending in June 2025,
wages and salaries increased 3.6%, down from 4.2% the previous year. Job openings, according to the latest JOLTS data, held steady at 7.2 million in August, but that’s about 500,000 fewer than a year ago.
What This Means for Job Seekers and the Economy
The current jobs report suggests a
labor market in transition. While job growth continues, it’s not as robust as in previous years, and the rising unemployment rate signals that finding work is getting tougher for some Americans. Sectors like health care and hospitality are still hiring, but layoffs in transportation and government are offsetting those gains.
For job seekers, the market remains competitive, and wage growth is slowing. Economists warn that while the labor market isn’t in crisis, the days of rapid post-pandemic job gains are over. The next few months will be critical in determining whether this is a temporary slowdown or the start of a more significant shift.
Actionable Takeaways
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Job seekers: Focus on growing sectors like health care, food services, and social assistance.
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Employers: Prepare for a more competitive hiring environment as the labor market cools.
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Policymakers: Monitor the rising unemployment rate and consider targeted support for struggling industries.
The next jobs report, covering November, is scheduled for release on December 16, 2025. All eyes will be on whether the labor market can regain its footing—or if this cooling trend continues.
Sources
1. Employment Situation News Release - 2025 M09 Results
2. Current Unemployment Rate and Other Jobs Report Findings
3. ADP® Employment Report
4. The U.S. Economy Added 119,000 Jobs in September Even as ...
5. Jobs Report - National Federation of Independent Business (NFIB)
