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U.S. jobs report reveals hiring growth but rising unemployment in September

A delayed jobs report uncovers a split economy—strong hiring in healthcare contrasts with rising unemployment. What does this mean for the Fed’s next move?

Here in this picture we can see a news paper present and on that we can see some pictures and text...
Here in this picture we can see a news paper present and on that we can see some pictures and text printed.

U.S. jobs report reveals hiring growth but rising unemployment in September

The latest U.S. jobs report for September reveals a mixed picture of the labour market. While businesses added new positions, unemployment also climbed. The data, released late due to a government shutdown, shows both growth and challenges in key sectors. Indeed, U.S. employers created around 119,000 non-farm jobs in September, with gains concentrated in healthcare, hospitality, and social assistance. These sectors drove much of the hiring activity during the month. However, job losses occurred in transportation, warehousing, and the public sector. The overall unemployment rate rose to 4.4%, pushing the total number of unemployed Americans to 7.6 million. Among these, long-term unemployment fell slightly, with 1.8 million people still out of work for extended periods. The release of the September report faced delays because of a government shutdown. As a result, no employment data for October 2025 will be published. Economists note that strong job growth and persistent inflation make it unlikely the Federal Reserve will lower interest rates soon. The central bank has previously signalled caution about easing monetary policy while price pressures remain elevated. The September jobs data highlights a labour market that continues to expand but faces uneven conditions. With unemployment rising and certain industries cutting jobs, policymakers will weigh these trends against inflation concerns. No further updates on employment will arrive until November, leaving a gap in economic insights for October. The Federal Reserve’s next steps on interest rates will depend on how these factors develop in the coming months.

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