September Nonfarm Payrolls Top Views; Unemployment Rate Hits Highest Since 2021

10:49 AM EST, 11/20/2025 (MT Newswires) -- The US economy saw stronger-than-expected job growth in September, though the unemployment rate hit the highest level since 2021, according to a report that was delayed due to the recent federal government shutdown.

Total nonfarm payrolls rose by 119,000 two months ago, the Bureau of Labor Statistics reported Thursday, more than the 51,000 increase expected in a survey compiled by Bloomberg. The August payrolls were revised to show a drop of 4,000 from the previously reported increase of 22,000, while gains for July were adjusted to 72,000 from 79,000, the BLS said.

The unemployment rate edged up to 4.4%, the highest since October 2021, while Wall Street expected it to hold steady at 4.3%.

The report, which comes less than a month before the Federal Reserve's next monetary policy meeting, was delayed by nearly seven weeks due to the record-long federal government shutdown that ended last week.

"The data suggest that the labor market was continuing to slow as the autumn began, but it wasn't ringing any 'we're behind the curve' alarm bells at the Fed," Michael Gregory, deputy chief economist at BMO, said in a report. "And the big question for the central bank is: What has happened in the labor market since?"

The jobs report for October, which was originally scheduled to be released on Nov. 7, will no longer be published, according to the BLS. The November report is now scheduled for a Dec. 16 release.

Fed officials offered "strongly differing views" regarding the central bank's interest rate decision in December, minutes of the October meeting showed Wednesday, underscoring a growing divide among policymakers.

Private payrolls for September grew by 97,000 after an 18,000 gain in August, well above a 65,000 increase expected in the Bloomberg survey. The service industry added 87,000 jobs, including 57,100 in healthcare and social assistance, while employment in the goods-producing sector increased by 10,000.

"We would not fully write off the possibility of a 25 (basis point) rate cut in December based on this data, though it will not convince the policymakers that do not see evidence of a significant weakening in the labor market to change their mind," Jefferies Chief US Economist Thomas Simons said. "The decision will be another close call."

Also on Thursday, the Department of Labor released data on weekly applications for unemployment insurance for the first time in about two months. For the week ended Nov. 15, the seasonally adjusted number of initial claims decreased by 8,000 to 220,000. The consensus was for a 227,000 print in a Bloomberg poll.

The four-week moving average totaled 224,250, dropping by 3,000 from the prior week's average, according to the DOL report.

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