The unemployment rate is a measure of the percentage of the total labor force that is unemployed but actively seeking employment and willing to work. It’s a key indicator of the health of the labor market and the economy. For example, an unemployment rate of 4.2% means that 4.2% of the people who are able and willing to work are currently without a job.
Nonfarm payrolls refer to the total number of paid workers in the U.S., excluding farm employees, government employees, private household employees, and employees of nonprofit organizations. This statistic is reported monthly by the U.S. Bureau of Labor Statistics and is a critical indicator of economic health. An increase in nonfarm payrolls typically signals economic growth and means more job creation.
Employment Situation – September 2025
The U.S. Bureau of Labor Statistics reported that nonfarm payrolls increased by 119,000 in September, the largest gain in five months, but showed little overall change since April.
The unemployment rate held at 4.4%, with 7.6 million people unemployed, up from 6.9 million a year earlier.
Labor Force Overview
Household survey data indicated that unemployment rose slightly among adult women (4.2%) and Asians (4.4%), while rates for men, teenagers, Whites, Blacks, and Hispanics were largely unchanged.
Also, long‑term unemployment remained at 1.8 million, accounting for nearly a quarter of all unemployed.
The labor force participation rate stayed at 62.4%, and the employment‑population ratio was 59.7%, down 0.4 points from a year earlier.
However, part‑time employment for economic reasons held at 4.6 million, while discouraged workers numbered 557,000.
Industry Employment
- Health care: +43,000 jobs (ambulatory services +23,000; hospitals +16,000).
- Food services & drinking places: +37,000 jobs.
- Social assistance: +14,000 jobs, led by family services (+20,000).
- Transportation & warehousing: −25,000 jobs (storage −11,000; couriers −7,000).
- Federal government: −3,000 jobs, down 97,000 since January peak.
- Other industries: Little or no change across construction, manufacturing, retail, finance, and professional services.
Wages and Hours
Average hourly earnings rose by 9 cents to $36.67, up 3.8% over the year. Earnings for production and nonsupervisory employees increased to $31.53. Meanwhile, the average workweek was unchanged at 34.2 hours, with manufacturing hours steady at 39.9 and overtime at 2.9.
Government Shutdown
Publication of the September report was delayed six weeks due to the longest federal government shutdown in U.S. history.
The shutdown also prevented the collection of October household survey data, meaning the October employment report has been cancelled.
October establishment survey data will be combined with November’s release, scheduled for December 16, 2025.
Impacts of the Report on the Stock Market
The September 2025 Employment Situation report lifted the S&P 500, with SPY rising after its release.
Markets welcomed the addition of 119,000 jobs, which was more than double expectations and marked the strongest gain in five months. This signaled resilience in the labor market despite recent softness, reassuring investors that economic activity remains on a solid footing.
The report also carried an unusual context, as its release was delayed six weeks due to the government shutdown, and the October report was cancelled. With limited data visibility, investors leaned heavily on September’s rebound as the most reliable signal.
