U.S. reports 119,000 jobs in late September report as unemployment rises to 4.4%

The U.S. added 119,000 new jobs in September after a long delay, according to the Bureau of Labor Statistics. The release came after the 44‑day government shutdown that froze all federal data collection.

The figure beat the forecast of 50,000 and followed a revised loss of 4,000 jobs in August. July was also revised down to 72,000, a drop of 7,000 from the earlier estimate. The unemployment rate moved up to 4.4%, the highest since October 2021.

A wider measure that includes people not searching for work or working part-time for economic reasons slipped to 8%. Average hourly earnings rose 0.2% in the month and 3.8% from a year earlier.

This report was the first jobs update since the August numbers came out on September 5. The shutdown blocked agencies like the BLS and the Bureau of Economic Analysis from releasing anything.

Unemployment climbs as key sectors lose workers

Markets had been waiting for this data to get a sense of where the labor market stood before the freeze. Daniel Zhao from Glassdoor said the data still showed strength before the shutdown but warned that it was old, saying the report “does not reflect where we stand now in November.”

Traders kept bets that the Federal Reserve will not cut rates at the Dec. 9‑10 meeting. This is the last jobs report the Fed will see before that meeting. Minutes from the October meeting showed many officials prefer to hold rates steady.

Seema Shah from Principal Asset Management said the report still moved markets even though it was backward-looking.

She said equities reacted to the stronger payrolls figure, while the bond market responded to the rise in unemployment and slower wage growth. The labor market kept the same general pace seen throughout the year.

Firms stayed cautious about hiring new people or letting workers go during a period of economic swings tied to policy moves from President Donald Trump’s White House.

New weekly claims for unemployment benefits totaled 220,000 for the week ending November 15. That was down 8,000 from the prior week and lower than the forecast of 227,000. Hiring gains in September came from health care, which added 43,000, close to its trend across the year.

Bars and restaurants added 37,000 and social assistance added 14,000. Losses came from transportation and warehousing, which dropped 25,000, and the federal government, which fell 3,000 for the month and 97,000 for the year.

Professional and business services fell 20,000, driven by a decline of 16,000 in temporary help.

Household survey signals stronger job picture

The household survey showed employment rising 251,000. The labor force grew 470,000 to a record 171.2 million. The participation rate moved to 62.4%, the highest since May. Full-time work increased 673,000, while part-time work dropped 573,000.

The shutdown made the Fed’s job harder. Officials cut rates in September and October but now face a tougher December decision without fresh data. Minutes showed many preferred skipping a December cut because they did not have enough indicators.

With this September report out, the BLS said it will release jobs data for October and November on December 9. October will not include an unemployment rate since the household survey could not be completed during the shutdown.

Federal Reserve Bank of Cleveland President Beth Hammack said Thursday in remarks prepared for a conference she hosted that lowering interest rates to support the labor market could extend the period of above-target inflation and increase financial stability risks.

“Lowering interest rates to support the labor market risks prolonging this period of elevated inflation, and it could also encourage risk-taking in financial markets,” Hammack said Thursday. “This means that whenever the next downturn comes, it could be larger than it otherwise would have been, with a larger impact on the economy.”

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.