New York, November 20, 2025
The U.S. economy added 119,000 jobs in September 2025, marking a rebound after months of sluggish job growth. Despite this increase, the unemployment rate edged slightly higher to 4.4%, reflecting ongoing labor market complexities following a prolonged government shutdown.
The September jobs report, delayed for nearly seven weeks due to the recent over-month-long U.S. government shutdown, revealed a modest pick-up in hiring after a stagnant summer. Employers added 119,000 positions, signaling some resilience in employment trends despite broader economic uncertainties.
Sector Gains and Losses
Health care led the employment gains with an increase of 43,000 jobs, driven by ambulatory health care services and hospitals. The food services and drinking places sector also expanded by 37,000 jobs, while social assistance added 14,000 positions. These sectors reflect stable demand in essential services and hospitality.
Conversely, sectors such as transportation and warehousing experienced notable declines, shedding 25,000 jobs primarily in warehousing and courier services. The federal government sector continued its downward trend, losing 3,000 jobs since January, with the shutdown’s residual effects contributing to ongoing federal employment reductions.
Impact of Government Shutdown and Future Outlook
The extended government shutdown halted data publication, delaying the release of the September report and complicating timely assessment of labor market conditions. Analysts expect the October jobs data to show weaker job growth, partially due to layoffs prompted by the shutdown’s resolution.
Throughout 2025, the U.S. labor market has displayed sluggish growth, placing policymakers under pressure regarding interest rate directions and economic support measures. The steady additions in key sectors such as health care and hospitality provide some evidence that the labor market remained stable before and during the shutdown period.
Labor Market Trends and Policy Implications
The cautious improvement in job growth amidst a climbing unemployment rate indicates a labor market holding steady without gains accelerating strongly. This mixed signal complicates forecasting for economic growth and monetary policy, as underlying weaknesses persist alongside pockets of strength.
These figures highlight the challenges faced by the U.S. economy in navigating post-shutdown recovery and broader economic uncertainties. Close monitoring of upcoming reports and sectoral performance will be critical for policymakers, business leaders, and economists in determining the next steps to support sustainable growth.