The US economy added 29,000 jobs in September, falling well short of economist expectations and marking the third-weakest jobs report of 2026, according to data released by the Labor Department on Friday.

The monthly release is one of the most closely watched readings on the US labor market, because Federal Reserve officials weigh hiring and unemployment data when setting interest-rate policy.

Economists surveyed by Bloomberg had forecast a gain of 90,000 jobs. A post from The Kobeissi Letter cited expectations of 89,000 jobs and said August’s employment figure had been revised lower by 29,000 jobs.

BREAKING: The US economy adds +29,000 jobs in September, well below expectations of +89,000. The unemployment rate rose to 4.2%, above expectations of 4.1%. August's job number was also revised down by -29,000 jobs. This marks the third weakest jobs report of 2026.

— The Kobeissi Letter (@KobeissiLetter), October 2, 2026 (X post)

The unemployment rate rose to 4.2% from 4.1% in August. Economists had expected it to remain at 4.1% for a third consecutive month.

What the Jobs Data Showed

The Labor Department’s release, known as the Nonfarm Payrolls Report, also revised August’s job gains lower. The original report showed 162,000 new for the month, but that figure was reduced to 133,000. Payroll figures are routinely revised in later releases as more complete data arrives, so downward adjustments like this one matter to analysts tracking whether labor-market momentum is fading.

Other labor-market indicators published before Friday’s report offered a mixed picture. August survey data showed that job openings, hiring and layoffs remained mostly flat. Payroll company ADP reported earlier in the week that private employers added 90,000 jobs in September, exceeding expectations.

Although company layoffs have remained limited in recent months, businesses have been slow to hire new workers.

Market Reaction

Bitcoin was already trading higher before the jobs data was released and continued to trade just below $87,000 afterward.

US stock-index futures also advanced, with Nasdaq futures rising 1.2% as markets reacted to the weaker-than-expected employment figures. The 10-year Treasury yield fell seven basis points to 5.17%.

Gold prices climbed more than 1%, while the US dollar declined against other major currencies. Interest-rate expectations feed into valuations across equities, bonds, gold, and digital assets, which is why a shift in Fed pricing can move all of these markets at once.

Interest rates had risen throughout September, but bond buyers returned to the market late in the week as that trend began to shift. Short-term interest-rate markets had previously priced in a second Federal Reserve rate hike at the central bank’s October 28 meeting.

Those expectations fell sharply during the 48 hours before the jobs report. Markets were pricing in a 23% chance of another hike before the data was released.

The weak employment report has raised questions about the Federal Reserve’s recent policy moves. Investors are watching whether higher interest rates have caused businesses to delay hiring. The Fed’s next policy meeting is scheduled for October 28, when traders will look for any change in the central bank’s approach in response to the new data. Ahead of that meeting, upcoming labor-market readings and any public signals from Fed officials will give traders fresh inputs for sizing the odds of a further hike.

Source: CoinCentral