WASHINGTON – The U.S. economy added 119,000 jobs in September, the Labor Department reported Thursday, while the unemployment rate rose to 4.4 percent.
Private payrolls increased by 97,000 and government employment rose by 22,000. The September release was delayed more than a month after a 43-day federal government shutdown that furloughed Bureau of Labor Statistics staff who compile the report, according to Fox Business.
Why this matters: the delayed and revised data offer a more mixed picture of the labor market at a time the Federal Reserve is weighing further interest-rate cuts. Revisions that reduce previously reported gains for July and August and persistent sectoral losses complicate near-term readings of economic momentum and the policy calculus in Washington.
Background
The September report was originally scheduled for early October but was not published until mid-November after BLS staff were furloughed during the 43-day shutdown. The agency said it could not compile a key portion of the October report and will include some October data in the November release rather than issue a standalone October report.
That decision reflects long-standing BLS practice: the agency relies on two main surveys, the household survey that measures unemployment and the establishment survey that counts payroll jobs. Because different staff and data collection processes support each survey, operational disruptions can force the agency to adjust timing or combine releases to preserve data quality.
For broader context on the economic picture, see our Economy Coverage, which tracks labor, inflation and fiscal developments that shape monetary policy.
Details from officials and records
Government and Labor Department establishment survey figures show several notable points for September and the prior months:
- Overall payrolls: +119,000 jobs in September.
- Private payrolls: +97,000, above economists polled by LSEG who had expected roughly 62,000.
- Government payrolls: +22,000; state governments +16,000, local governments +9,000, federal government -3,000.
- Revisions: July was revised down by 7,000 (from +79,000 to +72,000) and August was revised down by 26,000 (from +22,000 to -4,000), leaving July and August combined 33,000 lower than previously reported.
The BLS noted that federal employment is down about 97,000 jobs since reaching a peak in January. The agency counts federal employees on paid leave or receiving ongoing severance pay as employed in its establishment survey, a practice that can mute the immediate impact of furloughs on the jobs total.
Industry gains and losses
- Healthcare: +42,800 jobs, led by ambulatory health services (+23,300) and hospitals (+16,400).
- Food services and drinking places: +36,500 jobs.
- Social assistance: +14,300 jobs.
- Manufacturing: -6,000 jobs; the sector is down about 94,000 jobs from a year earlier.
- Transportation and warehousing: -25,300 jobs, including warehousing and storage (-10,700) and couriers and messengers (-6,700).
These industry patterns point to a labor market that remains resilient in consumer-facing services while facing pressure in goods-producing and logistics sectors. Regional exposure to manufacturing and transportation declines could translate into localized labor-market weakness even if national totals appear modestly positive.
Labor market indicators
The labor force participation rate was 62.4 percent in September, little changed over the month and the past year. The employment-population ratio stood at 59.7 percent, down 0.4 percentage point from a year earlier.
Long-term unemployment, defined as jobless 27 weeks or more, was about 1.8 million people and represented 23.6 percent of all unemployed. Workers employed part time for economic reasons held steady at 4.6 million. Multiple jobholders rose by 17,000 and accounted for 5.4 percent of total employment.
Economists note that the unemployment rate can rise even as payrolls grow when more people enter or re-enter the labor force, or when household survey measures diverge from establishment survey counts. Those differences make it important to read multiple indicators before drawing conclusions about the underlying trend.
Reactions and next steps for policy
The report arrives as the Federal Reserve considers whether to cut interest rates at its December meeting. Policymakers trimmed rates by 25 basis points at the September and October meetings amid concerns about labor-market strength and inflation remaining above the Fed’s 2 percent target.
Nancy Vanden Houten, lead economist at Oxford Economics, said the September report “may be backward-looking but offers reassurance that the labor market was not crumbling before the government shutdown,” and that there was nothing in the data to change her forecast that the Fed would leave rates unchanged in December.
Federal Reserve officials have emphasized that they will look through one-off disruptions but cannot ignore persistent signs of cooling if job gains remain weak and unemployment drifts higher. That balance will shape decisions about the pace and timing of rate cuts in the coming months.
Analysis
The delayed release and downward revisions to July and August underscore how disruptions in government operations can complicate economic monitoring and policy decisions. When the agency that produces benchmark economic series is unable to operate on schedule, policymakers and markets must rely on a patchwork of data that may obscure short-term trends and increase uncertainty about policy effectiveness.
Industry-level results show a labor market shifting from broad strength to uneven performance. Gains in healthcare and leisure sectors contrast with losses in manufacturing and transportation, raising questions about the durability of job creation and the potential for regional or sectoral weakness to spread. That matters for governors and congressional leaders who set fiscal priorities and oversee workforce programs.
For the Federal Reserve, the data present tradeoffs. Slower job growth and a rising unemployment rate provide rhetorical space to consider rate cuts aimed at supporting growth. At the same time, persistent inflation and data uncertainty argue for caution. The November report, which will include some October data, will be pivotal for resolving those competing signals.
Finally, the impact of the shutdown on statistical operations highlights governance and institutional risk. Interruptions to essential federal statistical work reduce the reliability and timeliness of official measures, complicating both accountability and the capacity for rapid policy responses. Strengthening contingency planning for core statistical functions is a governance priority if policymakers want to avoid similar information shortfalls in future crises.
