US employers added far fewer jobs in September than in prior months, and the unemployment rate climbed to 4.2%, according to reuters.com. The slowdown marked a sharp step down in hiring, the outlet reported on Friday, October 2, 2026.
The weaker-than-expected payroll figures rippled through markets. xtb.com described the nonfarm payrolls release as a downside surprise and noted the US dollar dipped after the numbers landed. Ahead of the report, fxleaders.com reported that Dow futures drifted sideways as investors waited for the labor market data, while Yahoo Finance UK said a rebound in Treasuries had raised the stakes for the jobs figures amid talk of looming rate hikes.
The September report had been closely watched. CNBC published a preview noting what to expect from the release before it arrived. The combination of slower hiring and a higher jobless rate gives policymakers and traders a fresh read on the health of the US labor market at a time when interest rate expectations were already in flux.
Attention now turns to how Federal Reserve officials and financial markets interpret the softer data, and whether subsequent labor reports confirm a cooling trend or a one-month dip.
