US job growth picked up in September, with nonfarm payrolls rising by 119,000 after a decline the previous month, according to Bureau of Labor Statistics data released Thursday.
The unemployment rate edged up to 4.4%, its highest level in nearly four years, driven by an expanding labor force. Average hourly earnings increased 0.2% from August.
The September report — originally scheduled for release on Oct. 3 — had been delayed by the federal government shutdown.
Because data collection concluded before the shutdown began on Oct. 1, the report became one of the first major releases published following the government’s reopening.
Health care and hospitality drive gains
Job gains were concentrated in a few key sectors. Health care added 43,000 positions, broadly in line with its trend over the past year.
Bars and restaurants generated 37,000 jobs, and social assistance contributed another 14,000.
Several industries saw contractions. Transportation and warehousing lost 25,000 positions, while manufacturing and business services also posted declines.
Federal government employment fell by 3,000 in September and is down 97,000 so far this calendar year.
Private payrolls increased overall, offsetting losses in public-sector employment.
The mixed sectoral performance and an earlier 4,000 decline in August payrolls point to an uneven labour market heading into the final quarter.
Prior readings had described a “low-hire, low-fire” environment, which has recently shifted toward a rise in corporate layoff announcements. That trend has amplified concerns about job security among U.S. workers.
Jobless claims fall despite layoff announcements
In a separate report, applications for US unemployment benefits fell to 220,000 last week, underscoring continued labour-market resilience despite economic uncertainty.
Initial claims dropped by 8,000 in the week ending Nov. 15, below the 227,000 expected in a Bloomberg survey of economists.
Continuing claims — which track the number of Americans receiving benefits — rose to 1.97 million in the previous week, according to the Labor Department.
The figures mark the first nationwide claims data released since the 43-day government shutdown suspended reporting.
The decline in new applications comes even as several large corporations, including Amazon.com and Target, have announced job cuts in recent weeks.
The four-week moving average for initial claims, a measure that smooths week-to-week volatility, slipped to 224,250.
Together, the delayed jobs report and the latest claims data reflect a labour market that is losing momentum but has not yet shown broad-based deterioration.
Payroll growth remains modest, layoffs are rising, and the jobless rate is at its highest since 2021 — yet employers appear reluctant to meaningfully reduce staffing levels, keeping overall conditions stable for now.
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