US Employers Added Just 29,000 Jobs Before Midterms

The final jobs report before the midterm elections shows American employers adding only 29,000 positions in September, a sharp pullback from August, according to figures from the Bureau of Labor Statistics cited by the BBC. The unemployment rate rose to 4.2% from 4.1% the month before. Here is what the numbers show and why they matter heading into November.

How much did US hiring slow in September?

The Bureau of Labor Statistics reported 29,000 net new jobs for September, down from a revised 133,000 in August. Headcounts across major sectors — from technology to retail — were little changed, according to the BBC's report on the data, as firms chose to hold staffing steady rather than add or cut workers.

September jobs snapshot

• September payroll gain: 29,000 jobs
• August payroll gain (revised): 133,000 jobs
• Unemployment rate, August: 4.1%
• Unemployment rate, September: 4.2%

Why did the unemployment rate rise?

The BLS data show the uptick to 4.2% came alongside the stall in hiring, a combination that points to a cooling labor market rather than a collapse. George Brown, senior economist at Schroders, described this year's job gains as a "rollercoaster" but said a single soft report does not by itself signal a lasting downturn, according to the BBC. Bradley Saunders, North America economist at Capital Economics, called the weaker figure "not disastrous," attributing part of the drag to a drop in government roles and to changes in temporary visa policy that weighed on overall job growth.

What are economists saying about the slowdown?

Jeffery Roach, chief economist at LPL Financial, told the BBC the report reveals tension between "goods producing sectors that support the AI boom" and service industries adjusting to changes brought on by that technology.

"Given the overall softness of the labour market, the likelihood of two Fed hikes is going lower." — Jeffery Roach, chief economist, LPL Financial

That tension — AI-linked manufacturing and goods sectors holding up while service employment softens — is one reason economists are reading the report cautiously rather than as a single clear signal in either direction.

How does this affect the Federal Reserve's rate decisions?

The cooling trend reduces the likelihood of further interest rate increases by the Federal Reserve, according to the economists cited by the BBC. Roach's comment that the odds of "two Fed hikes" are declining reflects a broader view among the sources quoted: a softening labor market gives the central bank less reason to tighten policy further, even as the single month's data leaves room for revision.

Why does this matter for the midterm elections?

The report lands a month before midterm congressional elections and sits awkwardly against President Donald Trump's public description of the economy as "the hottest" in the world, the BBC noted. An AP/NORC poll released Thursday found just 17% of Americans approve of Trump's handling of cost-of-living issues, while 26% approve of his handling of the economy overall — both new lows for his presidency that, per the BBC's reporting, fall below the lowest marks recorded for former President Joe Biden.

Trump has shown some awareness of the gap between his messaging and public sentiment. "I've done a very bad job of explaining how good the country is doing," he said at a White House event earlier this week, according to the BBC. That remark, paired with the BLS figures, sets up a contrast Republicans will have to address on the campaign trail as voters weigh cost-of-living concerns against administration claims of a booming economy.

What happens next with the data?

Economists quoted by the BBC stopped short of calling the September number a turning point. Brown's "rollercoaster" framing and Saunders' "not disastrous" assessment both suggest the report will be read alongside October's figures before anyone draws firmer conclusions about whether the slowdown is a blip or the start of a longer trend. For now, the headline numbers — 29,000 jobs added, unemployment at 4.2% — are what voters and the Federal Reserve alike will be weighing over the next several weeks.

For the full data and reporting, see the BBC's original coverage.