Washington — The September jobs report released Friday shows U.S. employers added a modest 29,000 positions, while the unemployment rate ticked up to 4.2% from 4.1% in August. The figures arrive a month before voters head to the polls in the pivotal 2026 midterm elections.
Hiring slowdown and wage growth
Hiring fell sharply from a revised 133,000 jobs added in August, and the Labor Department also trimmed 60,000 jobs from the combined July‑August totals. Average hourly wages rose just 3% year‑over‑year, the smallest gain since May 2021, suggesting wage pressure on inflation remains modest.
Federal Reserve outlook
With the labor market showing signs of softness, the Federal Reserve may keep its policy rate steady at its next meeting rather than raise it further. While the Fed’s dual mandate includes maximum employment, officials have emphasized their primary focus on taming inflation, which has stayed above the 2% target for more than five years.
Sector‑by‑sector snapshot
Federal, state and local governments shed 17,000 jobs, and professional and business services trimmed 9,000. Healthcare added 17,000 jobs, far below the 33,000 average monthly gain over the past year. Construction and manufacturing posted gains of 11,000 and 9,000 jobs respectively.
Economist Bradley Saunders of Capital Economics linked the healthcare hiring slowdown to the Trump administration’s revocation of work authorizations for 350,000 Haitians, a move intended to protect American workers and reduce wage competition.
Labor market dynamics
Unemployment rose partly because 485,000 people entered the labor force and have not yet found work. The Labor Department’s gross‑hiring measure has been flat for over two years, creating a “low‑hire, low‑fire” environment where those employed feel secure but job seekers struggle to find openings.
Glassdoor’s employee confidence index fell to its lowest level since 2016, and the Conference Board reported consumer confidence at a decade‑low. Yet the overall unemployment rate remains low, reflecting a resilient market that has withstood trade policy challenges, high interest rates, and geopolitical tensions.
Trump administration’s perspective
President Trump’s team emphasizes that the current labor market is strong enough to sustain a low unemployment rate even with reduced hiring. The administration points to immigration enforcement and the recent reduction in work authorizations as factors that lower competition for jobs, helping to keep the unemployment rate near historic lows.
“We are seeing a labor market that continues to protect American workers while keeping inflation in check,” said Luke Tilley, chief economist at Wilmington Trust. “Job growth is expected to stay within a 25,000‑to‑75,000 range, which is healthy given today’s demographic trends.”
Looking ahead to the election
The report is the final jobs data before the November 3 midterms, which will decide whether President Trump’s Republican Party retains full control of Congress. A Thursday Associated Press‑NORC poll found only 17% of adults approve of Trump’s handling of the cost of living and 26% approve of his overall economic management, marking a new low for the administration.
Despite the polling challenges, the administration remains confident that a strong, low‑unemployment economy will resonate with voters who value job security, family stability, and individual liberty.
Original reporting: Texarkana Gazette — read the source article.
