Actalent Labor Market and Economy Report: A Look at Trends in September 2026

Eliza Hetrick, Actalent Market Research Analyst

U.S. employment increased by just 29,000 jobs in September, following strong gains in August.

Revisions to prior months suggest weaker job gains than initially reported. July’s employment change was revised from a gain of 21,000 jobs to a loss of 10,000 jobs. August’s increase was revised from a gain of 162,000 jobs to 133,000.

All of the key industries that Actalent supports added jobs in September. Notably, employment in the architectural, engineering and related services industry increased by 5,800 jobs in September and is up by 2.6% year-over-year (YOY). Many companies in this industry continue to win contracts related to data centers, transportation infrastructure, water and wastewater, power infrastructure and military infrastructure projects.

Average hourly earnings rose 3.0% in September, continuing the recent moderation in wage growth. Wage growth outpaced inflation from May 2023 through March 2026 but has since fallen below the rate of inflation. As a result, inflation-adjusted, or "real,” earnings have declined, reducing the purchasing power of many consumers.

Labor Market Overview: September 2026

29K
Jobs Gained in September

U.S. employment increased by 29,000 jobs in September, following an increase of 133,000 jobs in August. Employment is up by just 0.3% year-over-year.

61.8%
Labor Force Participation Rate

The labor force participation rate increased from 61.6% in August to 61.8% in September but is down 0.7 percentage point compared to a year ago.

4.2%
Unemployment Rate

The unemployment rate held steady at 4.2% in September. Unemployment rates close to 4.0% suggest a relatively limited supply of available job seekers.

1.6M
August Layoffs

Layoffs slightly declined from 1.7 million in July to 1.6 million in August. The number of quits was unchanged at 3.1 million. Quits and layoffs data lag one month behind other employment data.

Source: Bureau of Labor Statistics' Employment Situation Summary

Hear From Our Expert

"The headline job growth number does not reflect what is happening across every industry or market, and it misrepresents the strong opportunities that exist. Despite broader hiring slowdowns in some sectors, demand remains strong in areas including healthcare, manufacturing, construction, utilities and scientific R&D. At the same time, a stable unemployment rate signals that the labor market is not broadly weakening. For employers, this is a significant opportunity to be more intentional about where they invest in talent, using industry trends and market insights to anticipate their workforce needs and compete for specialized skills where demand remains strong."

Gerard Reynolds