US Economy Created 119,000 New Jobs in September, Topping Market Estimates

The Bureau of Labor Statistics’ delayed September employment report showed that the United States added more jobs than expected, suggesting that the labor market could be rebounding.

The economy created 119,000 new jobs, up from the downwardly revised decline of 4,000 jobs in August, according to the nonfarm payrolls report released on Nov. 20.

The unemployment rate ticked up to 4.4 percent—the highest since October 2021—from 4.3 percent.

Economists had forecast 50,000 new jobs and a jobless rate of 4.3 percent.

The unemployment rate still climbed despite the fact that the economy added a solid number of new jobs because people started looking for work but did not find employment immediately. If the number of job seekers outpaces the number of jobs created, the jobless rate ticks up.

Despite the six-week government shutdown, the Bureau of Labor Statistics (BLS) confirmed that data collection proceeded on schedule, aided by businesses continuing to self-report electronically throughout the spending impasse.

“As a result, the establishment survey collection rate (80.2 percent) for this initial release of September 2025 data is higher than usual,” the BLS stated.

Health care led payroll gains, adding 43,000 jobs in September, and was followed by food services and drinking places (37,000) and social assistance (14,000), according to the Nov. 20 report.

Health care payrolls have rocketed this year amid persistent demand, growth in ambulatory and hospital care, and chronic labor shortages.

Despite weakening consumer sentiment, the public continues dining out, leading businesses to hire more staff to meet demand. Other restaurants are extending their hours and menus to capitalize on the increase in traffic.

Employment in transportation and warehousing fell by 25,000 jobs in September, while manufacturing erased 6,000 positions, according to the BLS data.

The decline in payrolls within the warehousing and transportation space has been a result of reduced freight volumes, as well as automation and consolidation among logistics companies. As for manufacturing, exhausting excess inventories, global economic headwinds, and cooling goods demand have weighed on the sector this year.

Federal government employment maintained its downward trend, sliding by 3,000 jobs. In total, federal payrolls are down by 97,000 jobs this year.

Wage growth was mixed in September, with average hourly earnings rising by 0.2 percent and remaining unchanged year over year at 3.8 percent, according to the BLS report.

The labor force participation rate edged up to 62.4 percent, with average weekly hours remaining flat at 34.2.

Full-time employment perked up in September, surging by 673,000. Conversely, part-time work in September declined by 573,000.

Additionally, the number of people working two or more jobs remained near all-time highs, rising to 8.802 million.

Market Reaction

Stocks rocketed following the September jobs report.

The blue-chip Dow Jones Industrial Average and the tech-driven Nasdaq Composite Index surged by about 400 points. The broader S&P 500 climbed by almost 100 points, or 1.5 percent.

Yields on U.S. Treasury securities were mixed, with the benchmark 10-year yield firming above 4.14 percent.

The U.S. dollar index, a measure of the greenback against a weighted basket of currencies, fell by about 0.1 percent. Despite the Nov. 20 decline, the index continues to chip away at this year’s losses, as it’s poised to register a 1 percent weekly gain. Year to date, the index has slumped by 7.7 percent.

“The one-two punch of a stellar Nvidia earnings report last night and a better-than-expected September jobs report this morning should give the market a boost, given that it directly addresses the two biggest concerns of the bears: an AI bubble and a moribund economy,” Chris Zaccarelli, CIO for Northlight Asset Management, said in a note emailed to The Epoch Times.

October Jobs Report Canceled

The Bureau of Labor Statistics confirmed that it will not publish the October jobs report.

In Nov. 19 updates to its news release dates, the bureau noted that the household survey data could not be collected for the October period “due to a lapse in appropriations.”

The government shutdown—the longest on record—prevented federal agencies from collecting and reporting key economic data, including the employment situation.

“The household survey data is not able to be retroactively collected. The collection period for November 2025 data will be extended for both surveys, and extra processing time will be added,” officials said in a statement.

However, the establishment survey from the Current Employment Statistics survey will be included with the November nonfarm payrolls report.

Despite the absence or delays in vital statistics, economic observers have been drawing on alternative sources to assess the labor market’s health. Over the past several weeks, numbers that market watchers usually do not pay attention to have been thrust into the spotlight.

The Chicago Federal Reserve’s latest Labor Market Indicators report found that the real-time unemployment rate forecast for October was 4.4 percent—rounded up from 4.36 percent, as is the typical protocol—unchanged from September.

Additionally, the hiring rate for unemployed workers changed little at 45 percent, and the rate of layoffs and other separations was flat at 2.1 percent.

Employers added 42,000 new jobs in October, according to payroll processor ADP’s National Employment Report.

Planned job cuts exceeded 153,000 in October, global outplacement firm Challenger, Gray and Christmas reported earlier in November.

The plethora of data releases suggests that the labor market is continuing to cool down—in both labor supply and demand, according to Fed Vice Chairman Philip Jefferson.

“Unemployment insurance claims received from states have largely moved sideways in recent weeks,” Jefferson said in a Nov. 17 speech at the Kansas City Fed.

“Anecdotal reports about the state of the labor market have been mixed, with some firms announcing a slower pace of hiring or cutbacks and others indicating they are ready to move forward with previously delayed hiring and investment.”

He said he anticipates that the unemployment rate could inch up by the year’s end.

“While still solid, I continue to view the risk to my employment forecast as skewed to the downside,” Jefferson said.