U.S. employment increased by just 29,000 jobs in September, following strong gains in August.
By industry, significant gains were seen in food and drinking services (+59,200), and local government education (+41,900). Employment declined in the information industry (-23,000).
Revisions to prior months suggest weaker job gains than initially reported. July’s employment change was revised from a gain of 21,000 jobs to a loss of 10,000 jobs. August’s increase was revised from a gain of 162,000 jobs to 133,000.
Among the job categories Aston Carter supports, job postings increased month-over-month across accounting and finance (+16.3%), HR and talent acquisition (+8.9%), and supply chain and procurement (+9.7%). Jobs with notable month-over-month increases in demand included accountants (+10,958 postings), tax analysts and specialists (+6,995), bookkeepers and accounting clerks (+6,349), logisticians and supply chain specialists (+3,468), and HR and labor relations specialists (+3,449).
Average hourly earnings rose 3.0% in September, continuing the recent moderation in wage growth. Wage growth outpaced inflation from May 2023 through March 2026 but has since fallen below the rate of inflation. As a result, inflation-adjusted, or "real,” earnings have declined, reducing the purchasing power of many consumers.
U.S. employment increased by 29,000 jobs in September, following an increase of 133,000 jobs in August. Employment is up by just 0.3% year-over-year.
The unemployment rate held steady at 4.2% in September. Unemployment rates close to 4.0% suggest a relatively limited supply of available job seekers.
The labor force participation rate increased from 61.6% in August to 61.8% in September but is down 0.7 percentage point compared to a year ago.
Layoffs slightly declined from 1.7 million in July to 1.6 million in August. The number of quits was unchanged at 3.1 million. Quits and layoffs data lag one month behind other employment data.
Source: Bureau of Labor Statistics' Employment Situation Summary
Companies are in optimization mode, with hiring focused on talent that can improve efficiency, manage costs and support business performance. While overall job growth has slowed, low employment continues to create a competitive environment for experienced talent. Understanding the dynamics of the specific talent pools you’re hiring from and ensuring your compensation remains competitive can help position your organization to secure the skills it needs.
Lauren Casanova
Labor Market Analysis
U.S. employment increased by 162,000 in August, exceeding expectations.
Read More www.astoncarter.com/en/insights/labor-reports/september-2026-labor-market-analysis
Labor Market Analysis
U.S. employment declined by 23,000 jobs in July, marking the second monthly job loss in 2026.
Read More www.astoncarter.com/en/insights/labor-reports/august-2026-labor-market-analysis
Labor Market Analysis
Employment in Canada declined by 17,700 in April before increasing by 87,800 in May and 18,200 in June.
Read More www.astoncarter.com/en/insights/labor-reports/ca-economy-and-labour-market-brief-q2-2026
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