The U.S. added only 29,000 jobs in September, the government said in its final employment report before the midterm elections.
The Bureau of Labor Statistics said the unemployment rate inched up slightly, from 4.1% to 4.2%.
Wall Street forecasters had expected 84,000 added jobs, so the report will be seen as disappointing.
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Healthcare added 17,000 jobs, continuing its upward trend but at a slower pace than normal. Construction and manufacturing were up slightly, at 11,000 and 9,000 jobs, respectively.
Heather Long, the chief economist at Navy Federal Credit Union, said healthcare, construction and manufacturing account for the bulk of job growth over the past three months because of an aging population and the artificial intelligence boom.
“Who’s hiring right now?” she said on X. “Healthcare and firms that build or supply data centers.”
Overall, the jobs report is a disappointing downward turn for President Trump, who is touting an economic renaissance before the midterms.
The country added a whopping 162,000 jobs in August despite earlier summer losses. A surge in the hospitality sector and teacher hiring ahead of the new school year buoyed the month.
Job gains were lackluster in 2025, as employers eased off a post-pandemic hiring frenzy and worried about factors such as new tariffs.
Jobs rebounded earlier this year, turning the focus to high prices.
The Democratic National Committee made hay with the September report, calling it a sign the administration is failing.
“Donald Trump and [Vice President] J.D. Vance hollowed out the job market, leaving Americans struggling to find good-paying jobs — while sky-high prices on gas and groceries have swallowed up Americans’ wages,” DNC spokeswoman Kendall Witmer said.
Mr. Trump spent the morning focused on positive economic developments, including a big release of European diesel reserves that will cut fuel prices, and new South Korean investments in U.S. manufacturing.
Employment and inflation data affect whether the Federal Reserve raises benchmark borrowing rates.
Central bankers cut interest rates last year because they were worried about sluggish job growth. But with employment rather steady, the focus is primarily on inflation.
The Fed raised rates at its September meeting but might keep rates steady at its late October meeting right before Election Day.
On Friday, CME FedWatch – a major forecaster – said there is only a 20.5% chance the Fed raises rates in October.
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