September 2025 Jobs Report: 119,000 Positions Added as August Revised to Job Loss, Unemployment Hits 4.4%

The U.S. labor market delivered a surprisingly robust September 2025, adding 119,000 jobs and substantially beating economists' consensus forecast of just 50,000 positions. However, the unemployment rate climbed to 4.4% from 4.3%, reaching its highest level since October 2021, as 470,000 individuals entered the labor force seeking employment, according to the Bureau of Labor Statistics report released November 19 after a 43-day delay caused by the federal government shutdown.

The report's release, postponed from its typical first-Friday-of-the-month schedule due to the shutdown that began October 1, revealed both encouraging job growth and troubling underlying weakness. August employment was revised from a modest gain of 22,000 jobs to an outright loss of 4,000 positions, marking the second monthly job decline of 2025 after June's revised 13,000-job loss. Combined with July's downward revision, the two-month adjustment removed 33,000 jobs from previous estimates.

Healthcare continued carrying the labor market with 43,000 jobs, while leisure and hospitality added 36,500 positions. However, transportation and warehousing shed 25,300 jobs (the largest sector decline), professional services lost 20,000 positions, manufacturing contracted for the fifth consecutive month (down 6,000), and federal employment fell by another 3,000, bringing total government job losses to 97,000 since January.

The Headline Numbers: Beats Expectations But Concerns Deepen

The September employment report presented a complex picture of modest growth overshadowed by rising unemployment and continued revisions:

• Jobs Added: 119,000 new nonfarm payroll positions (vs. 50,000 consensus estimate)
• Unemployment Rate: 4.4%, up from 4.3% in August (highest since October 2021)
• Labor Force Growth: 470,000 people entered the labor force
• Labor Force Participation: 62.4%, unchanged from August
• Average Hourly Earnings: $36.67, up 0.2% monthly, +3.8% year-over-year
• College-Educated Unemployment: 2.8%, up from 2.7%

Critical Revisions to Previous Months:

• August 2025: Revised from +22,000 to -4,000 jobs (26,000-job downward revision, second monthly loss of 2025)
• July 2025: Downward revision contributing to combined 33,000-job reduction
• Total Revision Impact: 33,000 jobs removed from July-August estimates

September's 119,000-job gain significantly exceeded the depressed 50,000 expectation, which had been lowered due to August's initially weak 22,000 print and ongoing labor market deterioration. However, with August now revised to negative 4,000, the three-month total (July through September) shows just 194,000 jobs added, averaging under 65,000 per month, well below the 80,000-100,000 needed to keep pace with population growth.

The unemployment rate's climb to 4.4%, while driven partly by 470,000 people entering the labor force (a positive signal of worker confidence), marks the highest level since October 2021 and continues a concerning upward trajectory. The rate has risen from 3.5% earlier in 2025 to 4.4% in September, a 0.9 percentage point increase that often signals or accompanies recessions.

The 470,000 increase in the labor force represents the largest single-month gain since early 2024, suggesting workers who had been sitting on the sidelines are now actively seeking employment. However, many of these new entrants are struggling to find work, as evidenced by the rising unemployment rate despite solid job creation.

The August Revision Shock: Second Monthly Job Loss of 2025

August's revision from a gain of 22,000 jobs to a loss of 4,000 positions represents a 26,000-job downward adjustment and marks the second monthly job decline of 2025. This joins June's revised 13,000-job loss in breaking the economy's 42-month streak of continuous job growth that had persisted from January 2021 through May 2025.

The significance extends beyond the single-month loss:

Pattern of Systematic Overestimation: August's 26,000-job downward revision continues an established pattern where initial employment reports consistently overstate job growth. The BLS' preliminary benchmark revision, released in August 2024, showed the economy added 911,000 fewer jobs between April 2024 and March 2025 than initially reported, one of the largest downward revisions in the survey's history.

Two Monthly Losses in 2025: With both June (revised to negative 13,000) and August (revised to negative 4,000) now showing job losses, 2025 has produced two months of employment contraction. Outside of pandemic recovery and recession periods, such occurrences are rare and typically signal significant labor market weakness.

Summer Stagnation Confirmed: The combined July-August revision removing 33,000 jobs confirms that summer 2025 was far weaker than initial reports suggested. July's 79,000 jobs (revised from 73,000) and August's 4,000-job loss (revised from 22,000 gain) produced just 75,000 total jobs over two months, averaging under 38,000 per month.

Real-Time Data Reliability Crisis: The persistent one-directional error in preliminary employment estimates (always initially overstating growth) creates fundamental challenges for policymakers, businesses, and workers making decisions based on economic data. The Federal Reserve, which began cutting interest rates in September, may have acted sooner or more aggressively had it known August actually posted a job loss rather than a modest gain.

Government Shutdown Impact: Report Delayed, Data Disrupted

The September employment report's release on November 19, nearly seven weeks after it would typically have been published, resulted from a 43-day federal government shutdown that began October 1 and ended November 12. The shutdown had cascading effects on economic data:

October Report Cancelled: The October employment report was completely cancelled due to the shutdown interrupting data collection. The BLS was unable to conduct its monthly surveys of employers and households during the shutdown, making it impossible to produce reliable October estimates.

Next Report Combines Two Months: The next scheduled employment report, due mid-December, will combine both October and November data into a single release, making it difficult to assess month-by-month trends.

Economic Cost: The Congressional Budget Office estimated the shutdown permanently reduced GDP by approximately $11 billion, with additional temporary losses during the shutdown period. The economic disruption extended beyond government workers to contractors, businesses dependent on federal spending, and the broader economy.

Data Integrity Concerns: The delayed release and disrupted data collection raise questions about data quality and comparability. September's data was collected on schedule but couldn't be processed and released until after the shutdown ended, while October's absence creates a gap in the economic time series.

Sector-by-Sector Breakdown: Healthcare Leads, Transportation Collapses

Healthcare: +43,000 Jobs

Healthcare added 43,000 positions in September, maintaining its position as the most reliable source of employment growth despite moderating from earlier 2025 peaks of 60,000-70,000 monthly gains:

• Ambulatory Healthcare Services: Added 23,300 positions across physician offices, outpatient centers, and specialty clinics
• Hospitals: Added 16,400 jobs, continuing to address persistent staffing shortages
• Nursing and Residential Care: Contributed modest gains

Healthcare's 43,000-job contribution represents 36% of September's total job growth, underscoring the sector's outsized importance to overall employment. Major employers like HCA Healthcare, UnitedHealth Group, and Kaiser Permanente continue active recruitment across all skill levels.

Social Assistance: +14,300 Jobs

Social assistance services added 14,300 positions, primarily in individual and family services, childcare, and community support programs. This steady growth reflects persistent demand for support services, though the pace has moderated from earlier in 2025.

Leisure and Hospitality: +36,500 Jobs

Leisure and hospitality added 36,500 positions, a strong performance suggesting consumer spending on experiences remains resilient. The September gains reflected hiring across restaurants, hotels, entertainment venues, and recreational facilities, likely driven by fall tourism and event season activity.

The sector's strength contrasts with concerns about consumer spending sustainability given high credit card debt and depleted savings. Consumers appear to continue prioritizing dining out, travel, and entertainment even as they become more selective about goods purchases.

Government: +22,000 Jobs (Net)

Government employment showed a net gain of 22,000 positions in September, driven entirely by state and local government hiring that more than offset federal job losses:

• State Government: Added approximately 15,000 positions
• Local Government: Added approximately 10,000 positions
• Federal Government: Lost 3,000 positions, bringing total federal job losses since January to 97,000

The federal workforce reduction continues unabated, approaching 100,000 total job losses in nine months. This sustained contraction creates ongoing ripple effects through government contractors, the Washington D.C. metro economy, and businesses dependent on federal spending.

Construction: +19,000 Jobs

Construction added 19,000 positions, a solid gain suggesting continued demand for residential and commercial building despite elevated interest rates. The September increase likely reflects ongoing infrastructure projects funded by federal legislation passed in previous years.

Retail Trade: +13,900 Jobs

Retail trade added 13,900 positions, potentially reflecting early holiday season hiring as retailers prepare for the year-end shopping period. However, this gain remains modest compared to historical September-October patterns when retailers typically add 30,000-50,000 positions ahead of holidays.

Transportation and Warehousing: -25,300 Jobs (Largest Decline)

Transportation and warehousing shed 25,300 positions, the largest sector decline in September and a particularly concerning signal given the sector's role in e-commerce and supply chains:

• Warehousing and Storage: Lost 10,700 positions
• Couriers and Messengers: Lost 6,700 jobs
• Trucking: Showed weakness

The transportation and warehousing collapse likely reflects multiple factors: softening e-commerce demand as consumers pull back on goods purchases, companies like Amazon optimizing logistics networks, and broader supply chain normalization reducing need for excess capacity built during pandemic-era disruptions.

Professional and Business Services: -20,000 Jobs

Professional and business services shed 20,000 positions, continuing weakness in a sector that often serves as a bellwether for broader economic health. The losses likely concentrated in administrative services, consulting, and temporary help, suggesting businesses are reducing flexible capacity and overhead.

Manufacturing: -6,000 Jobs (Fifth Consecutive Monthly Decline)

Manufacturing lost 6,000 positions, marking the fifth consecutive month of job losses and confirming the sector is in sustained contraction:

• June 2025: -7,000 jobs
• July 2025: -11,000 jobs
• August 2025: -12,000 jobs (revised)
• September 2025: -6,000 jobs
• Five-Month Total: Approximately -36,000 jobs

The sustained manufacturing decline reflects ongoing challenges from trade policy uncertainties, strong dollar impacts on exports, weak global demand, and automation reducing labor intensity. Companies like Intel and IBM have announced significant restructuring plans affecting manufacturing operations.

What September Means for Job Seekers and Workers

The September employment report offers job seekers and workers a nuanced picture of modest improvement amid structural challenges:

The Encouraging Signs:

• 119,000 jobs added significantly beat 50,000 expectations
• 470,000 people entered labor force, suggesting renewed worker confidence
• Healthcare adding 43,000 jobs provides consistent opportunities
• Leisure and hospitality strength (36,500 jobs) indicates consumer spending resilience
• State and local government hiring (25,000 combined)
• Construction showing solid gains (19,000 jobs)

The Persistent Concerns:

• Unemployment at 4.4%, highest since October 2021
• August revised to job loss (negative 4,000), second monthly decline of 2025
• Transportation and warehousing collapsed (down 25,300)
• Professional services declining (down 20,000)
• Manufacturing in fifth consecutive month of losses
• Federal employment cuts nearing 100,000 total (97,000 through September)
• Summer 2025 (July-August) far weaker than initially reported

For active job seekers, September's report suggests a labor market that is adding jobs but becoming increasingly selective. Healthcare offers the most consistent opportunities, with hospitals and ambulatory care facilities actively hiring. Leisure and hospitality provides options in service roles, while construction shows steady demand.

However, workers in transportation, warehousing, professional services, and manufacturing face challenging conditions. The 470,000 people entering the labor force in September likely include many who remained on the sidelines during weaker summer months and now feel conditions have stabilized enough to resume job searches. This increased competition may extend job search timelines even as hiring improves modestly.

For currently employed workers, September's data supports continued caution. While job growth beat expectations, the combination of rising unemployment, negative August revision, and sector-specific weakness suggests the labor market remains fragile. Workers should focus on job security over speculative opportunities, particularly those in declining sectors like transportation, professional services, or manufacturing.

Federal employees and contractors face continued uncertainty approaching 100,000 total job losses. Those in government-adjacent roles should actively pursue contingency plans and consider pivoting toward private sector opportunities in growing industries like healthcare.

Economic Context: Federal Reserve Begins Cutting Rates

September's employment data arrives in the context of significant monetary policy shifts and political disruptions:

Federal Reserve Rate Cuts Initiated: The Fed cut interest rates by 25 basis points at its September meeting, citing cooling labor market conditions and moderating inflation. The decision preceded both the government shutdown and knowledge that August would be revised to show a job loss rather than a gain. September's better-than-expected job growth may give the Fed confidence to slow the pace of cuts in 2025.

Government Shutdown Economic Impact: The 43-day shutdown from October 1 to November 12 directly impacted approximately 1.8 million federal workers, with cascading effects on contractors and businesses serving federal employees. The CBO's estimate of $11 billion in permanent GDP loss underscores the significant economic cost of political dysfunction. The shutdown's disruption of economic data collection, resulting in the cancelled October jobs report, creates information gaps that complicate both policy decisions and business planning.

Revision Pattern Continues: September marks yet another month where revisions revealed employment significantly weaker than initially reported. The systematic overestimation of job growth in preliminary reports creates a fundamental challenge for economic decision-making. Policymakers, businesses, and workers must now treat initial employment reports with substantial skepticism, knowing the "true" picture emerges only months later.

Manufacturing Recession Deepens: Five consecutive months of manufacturing job losses totaling approximately 36,000 positions confirms the sector is in sustained contraction. Trade policy uncertainties, global demand weakness, and automation continue pressuring employment in a sector that often serves as a leading economic indicator.

Looking Ahead: October-November Combined Report

The cancellation of the standalone October report due to the government shutdown means the next employment data will arrive in mid-December as a combined October-November release. This creates unique challenges:

Two-Month Data Aggregation: Combining two months' data into a single release makes it impossible to assess whether October showed improvement, deterioration, or stability compared to September. Seasonal patterns, which typically vary between October and November, become difficult to interpret.

Longer Data Gaps: Workers, businesses, and policymakers must navigate nearly three months (September through November) with only a combined two-month data point, reducing the granularity needed for timely decision-making.

Shutdown Residual Effects: The economic disruption from the 43-day shutdown will appear in October-November data, but disentangling shutdown-specific impacts from underlying trends will be challenging. Federal workers who were furloughed temporarily show up as unemployed during the shutdown, then as employed once it ends, creating volatility unrelated to fundamental economic conditions.

Holiday Season Assessment: The combined October-November report will be the first indication of whether holiday hiring met, exceeded, or fell short of typical patterns. Retail, warehousing, and transportation sectors typically add substantial positions for year-end shopping, making the combined report critical for assessing consumer spending health.

Conclusion: Modest Improvement Amid Ongoing Fragility

The September 2025 employment report, released November 19 after a 43-day delay caused by the federal government shutdown, showed the U.S. labor market adding 119,000 jobs, substantially exceeding the 50,000 consensus forecast. Healthcare led with 43,000 positions, leisure and hospitality added 36,500 jobs, and state and local government contributed 25,000 positions combined. However, unemployment rose to 4.4%, the highest level since October 2021, even as 470,000 people entered the labor force.

The report revealed that August employment was revised from a modest 22,000-job gain to an outright loss of 4,000 positions, marking the second monthly job decline of 2025 after June's revised 13,000-job loss. Combined with July's downward revision, 33,000 jobs were removed from previous estimates, confirming summer 2025 was significantly weaker than initially reported.

Transportation and warehousing collapsed with a 25,300-job loss (the largest sector decline), professional services shed 20,000 positions, and manufacturing contracted for the fifth consecutive month (down 6,000, totaling approximately 36,000 losses over five months). Federal employment fell another 3,000, bringing total government job losses to 97,000 since January.

The government shutdown's cancellation of the October jobs report means the next employment data, due mid-December, will combine October and November into a single release, creating gaps in economic time series and complicating analysis of month-by-month trends.

September's better-than-expected job growth provides modest reassurance that the labor market has not collapsed, but rising unemployment, continued negative revisions, and sector-specific weakness (particularly in transportation, professional services, and manufacturing) underscore ongoing fragility. The Federal Reserve, which began cutting interest rates in September, faces the challenge of supporting employment without reigniting inflation.

For workers and businesses, September's report suggests a labor market that is functional but increasingly selective and fragile. Healthcare offers the most reliable opportunities, while transportation, professional services, manufacturing, and federal employment face sustained challenges. The combined October-November report will provide critical evidence for determining whether September represented stabilization or merely a temporary pause in labor market deterioration.

Data sources: U.S. Bureau of Labor Statistics Employment Situation Summary (released November 19, 2025, for September 2025 data). Report release delayed due to federal government shutdown October 1-November 12, 2025. October 2025 employment report cancelled; next report will combine October and November data. All statistics represent preliminary data subject to revision in subsequent reports.

Article Updates

November 19, 2025: Initial publication based on BLS Employment Situation report for September 2025. Report release delayed by 43-day federal government shutdown that began October 1. October jobs report cancelled; next release (mid-December) will combine October and November data. September showed 119,000 jobs added with unemployment at 4.4%, while August was revised from +22,000 to -4,000 jobs (second monthly job loss of 2025).