The delayed September employment report shows the U.S. economy added 119,000 nonfarm payroll jobs. The figure beat economist expectations despite growing signs of a weakening labor market.
The data was released Thursday after a six-week delay caused by the longest government shutdown in U.S. history. The shutdown halted work at the Bureau of Labor Statistics.
Economists had projected just 50,000 new jobs for September. The unemployment rate rose to 4.4%, which was slightly above expectations and up from 4.3% in August.
The report follows a sharp slowdown in August. The economy added only 22,000 jobs that month.
September’s release also included major revisions to past months. July job gains were revised down from 79,000 to 72,000. August was revised from a gain of 22,000 to a loss of 4,000. Taken together, job growth in July and August was 33,000 lower than previously reported.
Private employers added 97,000 jobs in September. That number came in well ahead of estimates of 62,000. Government payrolls grew by 22,000 after falling by the same amount in August. State governments added 16,000 jobs, and local governments added 9,000. The federal government lost 3,000 positions in September. Federal employment is now down 97,000 jobs since reaching a peak in January.
Several industries posted solid gains. Healthcare added 42,800 jobs, which was slightly above its 12-month average. Food services and drinking places gained 36,500 jobs. The social assistance sector added 14,300 jobs for the month. But other sectors continued to struggle. Manufacturing shed 6,000 jobs and is down 94,000 over the past year. Transportation and warehousing lost 25,300 jobs, including declines in storage, couriers, and messenger services.
The labor force participation rate held at 62.4%. It has changed little over the past year. The employment-population ratio remained at 59.7%. The ratio is down 0.4 percentage points over the last 12 months. Long-term unemployment stayed at 1.8 million, representing 23.6% of all unemployed Americans. The number of part-time workers who wanted full-time jobs totaled 4.6 million. Multiple jobholders increased by 17,000 in September.
The September report arrives at a time of mixed economic signals. Job Creators Network CEO Alfredo Ortiz said the stronger-than-expected number shows that pro-growth policies under President Donald Trump and Republicans are helping stabilize the labor market. He said challenges such as artificial intelligence layoffs and the affordability crisis are largely outside the control of policymakers.
National Economic Council Director Kevin Hassett said this week that artificial intelligence is creating a “quiet time” in the job market. He explained that companies are finding workers more productive. As a result, they are hiring fewer new employees. Hassett said some companies are slowing hiring. Others are restarting delayed hiring plans, adding to the mixed signals.
The delayed report comes as the Federal Reserve weighs whether to cut interest rates again at its December meeting. The Fed cut rates in both September and October.
Policymakers acted despite inflation remaining above the bank’s target. Fed Vice Chair Philip Jefferson said the latest data shows a gradual cooling in labor demand and supply. He warned that the central bank should move slowly on future rate changes.
Economists at Oxford Economics said the report is “backward-looking” due to the shutdown delay. They said it shows the labor market was not collapsing before the government closure.
The Bureau of Labor Statistics also announced that the October jobs report will not be released on its own. Workers were unable to compile key data during the shutdown. The agency will instead include October information in the November jobs report next month.