Employers hired many more workers than expected in September, defying a sharp slowdown over the summer that appeared to cool the labor market.
The United States added 119,000 jobs in September, according to data from the U.S. Bureau of Labor Statistics. That figure marked an acceleration from the previous month and surpassed an average of nearly 100,000 jobs added per month during the first half of 2025.
However, the report included a downward revision for the month of August, cutting performance from 22,000 jobs created that month to 4,000 jobs lost.
The unemployment rate rose to 4.4%, marking the highest level since October 2021. Still, the unemployment rate remains low by historical standards.
A sell-off in the stock market in recent days underscored the uncertainty hanging over the economy as some investors warned of an AI bubble. However, blockbuster earnings revealed by chip giant Nvidia on Wednesday night appeared to refute such concerns.
Mass layoffs at corporate giants such as Amazon, UPS and Verizon in recent weeks have drawn attention to a sluggish labor market and stoked fears that job losses could spread.
However, it’s probably too early to panic, some economists previously told ABC News. While the layoffs reflect a weakened labor market and the adoption of AI in some corners of the tech industry, they added, the prospect of further job losses remains highly uncertain.
Inflation has risen in recent months while hiring has slowed, raising the risk of an economic double whammy known as “stagflation.”
Those economic conditions have put the Federal Reserve in a bind, as the central bank must balance a dual mandate of keeping inflation under control and maximizing employment.
Federal Reserve Chairman Jerome Powell speaks during a press conference following a meeting of the Federal Open Market Committee at the Federal Reserve on October 29, 2025, in Washington, DC.
Alex Wong/Getty Images
“We have a situation where the risks are on the upside for inflation and the risks are on the downside for employment. We have a tool,” Federal Reserve Chairman Jerome Powell said at a news conference in Washington, DC, last month. “You can’t address both at the same time.”
Still, Powell said, concern has tilted toward strain in the labor market, prompting the central bank to cut interest rates by a quarter of a percentage point in each of its last two meetings.
“A further policy rate cut in December is not a foregone conclusion; in fact, far from it,” Powell told reporters.
Traders estimate the chances of interest rates remaining unchanged next month at about 66%, while the odds of a quarter-point rate cut are 33%, according to the CME FedWatch Toola measure of market sentiment.
On Wednesday, the Bureau of Labor Statistics (BLS) said it would not release a full jobs report for the month of October due to lost capacity during the shutdown. Rather, partial October employment data will be released as part of the November report, the BLS said.
