U.S. September payrolls rise 29,000 as unemployment reaches 4.2%

Oct 2, 2026 09:02 (22d ago)

U.S. employers added 29,000 jobs in September as unemployment rose to 4.2%.
Beth Hammack said average job creation was 41,000 per month over the past year, broadly matching the pace needed to keep labor-market conditions stable.
The Fed's policy-rate target stands at 3.75%-4.00%, with officials weighing further data before a possible year-end increase.

U.S. employers added 29,000 jobs in September, below economists' 90,000 forecast, while unemployment rose to 4.2% from 4.1% in August. Cleveland Federal Reserve President Beth Hammack said the report was broadly consistent with recent labor-market trends and that policymakers would receive substantial additional information before their Oct. 27-28 meeting. The Federal Reserve raised its policy-rate target by 25 basis points last month to 3.75%-4.00% and projected another increase before year-end, but comments from Hammack and other officials indicated that no move was likely in October. Weak payroll growth, a larger labor force and limited layoffs reinforced the picture of a low-hire, low-fire labor market rather than a broad employment contraction.