September Jobs Report 2025: Did the U.S. Job Market Show Strength After Shutdown?

The long-delayed September jobs report for 2025 finally arrived, showing the U.S. economy added 119,000 jobs—more than double expectations—while the unemployment rate rose to 4.4%, its highest since 2021.

The Bureau of Labor Statistics (BLS) released the report Thursday morning after a record 44-day government shutdown halted data collection and publication. Economists had forecast only 50,000 new jobs, making the result a stronger-than-expected rebound following a revised August loss of 4,000 jobs.

Key Highlights from the September Jobs Report 2025

According to the BLS, nonfarm payrolls rose by 119,000 in September, while the jobless rate edged higher from 4.3% to 4.4%. Average hourly earnings increased by 0.2% on the month and 3.8% year-over-year—slightly below wage growth forecasts of 0.3% and 3.7%, respectively.

Health care once again led the way in job creation, adding 43,000 positions, while bars and restaurants contributed 37,000. Social assistance followed with 14,000. However, several sectors saw declines, including transportation and warehousing (-25,000), professional and business services (-20,000), and the federal government (-3,000), which has lost nearly 100,000 jobs over the past year.

The household survey, which determines the unemployment rate, reported that 251,000 more people were employed in September, while the labor force grew by 470,000 to a record 171.2 million. The participation rate ticked up to 62.4%, its highest since May 2025. Full-time employment rose by 673,000, while part-time roles decreased by 573,000.

Meanwhile, initial jobless claims for the week ending Nov. 15 came in at 220,000, down 8,000 from the previous week, signaling continued labor market resilience heading into the final quarter of the year.

Economic Reactions and Federal Reserve Outlook

Financial markets responded positively to the delayed data. Stock futures climbed, while Treasury yields dipped. Analysts said the mixed report—strong hiring but higher unemployment—left the Federal Reserve with flexibility heading into its Dec. 9–10 meeting.

“These numbers show the labor market was still resilient before the shutdown, but they don’t fully reflect the current situation,” noted Daniel Zhao, chief economist at Glassdoor. “We’ll need the October and November data for a clearer picture.”

Fed policymakers are expected to keep interest rates steady, given the cooling in wage growth and modest rise in unemployment. This September report will be the last employment snapshot before the December Fed meeting.

Broader Economic Context

Economists view the report as a snapshot of pre-shutdown conditions rather than a current indicator. Despite steady hiring, uncertainty around fiscal policy and the lengthy shutdown have clouded the outlook for the fourth quarter.

“It’s a backward-looking report, but markets like the balance,” said Seema Shah, chief global strategist at Principal Asset Management. “Stronger payrolls suggest stability, while rising unemployment and slower wage growth give the Fed room to pause rate cuts.”

Overall, the September 2025 jobs report underscores a U.S. labor market that remained steady despite policy turbulence and data delays, setting the stage for a cautious yet stable close to the year.

FYI (keeping you in the loop)-

Q1: What did the September 2025 jobs report show?

The report showed the U.S. added 119,000 jobs in September 2025, while the unemployment rate rose to 4.4%.

Q2: Why was the September report delayed?

The report was delayed due to a 44-day government shutdown that halted data collection by the BLS and other agencies.

Q3: Which sectors added the most jobs?

Health care, bars and restaurants, and social assistance sectors saw the biggest job gains in September 2025.

Q4: How did markets react to the report?

Stock futures rose and Treasury yields fell, reflecting optimism about steady growth with limited inflation pressure.

Q5: What does this mean for the Federal Reserve’s December decision?

The mixed data likely means the Fed will hold rates steady in December, as job growth slows and wage gains ease.