US Adds 119,000 Jobs in Delayed September Report: Unemployment Rate Rises to 4.4%
November 21, 2025 | International Economic News & US Labor Market
By Sarah Mitchell
International Economics Correspondent
Focus: US economy, global markets, employment data
The US economy added 119,000 jobs in September 2025, exceeding expectations despite delayed reporting due to federal shutdown.
The United States Bureau of Labor Statistics released delayed employment data on November 21, 2025, revealing that the US economy added 119,000 jobs in September 2025—well above economist expectations. However, the unemployment rate ticked up to 4.4%, raising questions about the Federal Reserve's monetary policy direction.
The data's release was postponed by nearly two months due to a federal government shutdown that disrupted statistical agencies. This delay has complicated the Federal Reserve's decision-making process regarding interest rate adjustments as it navigates inflation concerns and economic growth targets.
The data's release was postponed by nearly two months due to a federal government shutdown that disrupted statistical agencies. This delay has complicated the Federal Reserve's decision-making process regarding interest rate adjustments as it navigates inflation concerns and economic growth targets.
Key Employment Statistics - September 2025
📊 Jobs Added: 119,000
- Exceeded economist expectations of 90,000-100,000 jobs
- Represents steady but moderate growth in labor market
- Indicates resilience despite economic headwinds
📈 Unemployment Rate: 4.4%
- Increased from 4.2% in August 2025
- Still historically low but trending upward
- Signals potential cooling in labor market
- May influence Federal Reserve policy decisions
⏰ Data Release Delay
- Originally scheduled for early October 2025
- Delayed by federal government shutdown
- Released on November 21, 2025 (6-7 weeks late)
- First time in decades such extensive delay occurred
Sector-Wise Job Growth Analysis
Sectors with Job Gains
- Healthcare and Social Assistance: +42,000 jobs (largest contributor)
- Professional and Business Services: +28,000 jobs
- Leisure and Hospitality: +21,000 jobs (post-pandemic recovery continues)
- Education Services: +15,000 jobs (academic year hiring)
- Financial Activities: +8,000 jobs
Sectors with Job Losses
- Manufacturing: -12,000 jobs (ongoing automation impact)
- Retail Trade: -8,000 jobs (e-commerce transition)
- Information Technology: -5,000 jobs (tech sector layoffs)
- Transportation and Warehousing: -3,000 jobs
Impact on Federal Reserve Policy
The delayed jobs report has created significant uncertainty for the Federal Reserve's monetary policy committee:
- Interest Rate Decisions: Fed was waiting for September data before December 2025 policy meeting
- Inflation vs. Employment: Balancing 2.8% inflation rate with rising unemployment
- Rate Cut Speculation: Economists now predict 25 basis point cut in December 2025
- Economic Soft Landing: Data suggests Fed's goal of cooling economy without recession may be achievable
- Market Response: Stock markets rallied on news, with S&P 500 up 1.2% following release
Labor Force Participation Rate
- ✓ Current Rate: 62.8% (September 2025)
- ✓ Previous Month: 62.9% (August 2025) - slight decline
- ✓ Pre-Pandemic Level: 63.4% (February 2020) - still below
- ✓ Prime-Age Workers (25-54): 83.1% participation rate
- ✓ Retirees Returning: Modest increase in 55+ age group workforce participation
- ✓ Youth Employment: 16-24 age group showing 56.2% participation
Wage Growth and Inflation
Average Hourly Earnings:
- Increased by 0.3% month-over-month (September 2025)
- Up 3.8% year-over-year (September 2024 to September 2025)
- Slightly above inflation rate of 2.8%, providing real wage gains
- Average hourly wage: $34.75 for all non-farm workers
- Healthcare workers saw highest wage growth at 4.2% annually
Government Shutdown Impact on Data
Why Was the Report Delayed?
- Federal government shutdown lasted 28 days (September 30 - October 27, 2025)
- Bureau of Labor Statistics furloughed 90% of staff during shutdown
- Data collection, processing, and analysis completely halted
- Had to re-contact employers and households after shutdown ended
- Quality control processes required additional time post-reopening
- Created 6-7 week delay in releasing September employment data
- October and November 2025 data also expected to face delays
Global Economic Context
- ✓ Eurozone Comparison: EU unemployment at 6.3%, higher than US
- ✓ China Economic Slowdown: Affecting US export-related jobs
- ✓ Japan's Recovery: Bank of Japan maintaining ultra-low rates
- ✓ UK Labor Market: 4.1% unemployment, similar to US trends
- ✓ Global Trade Tensions: Tariff concerns impacting manufacturing hiring
Expert Analysis and Forecasts
Economic Experts Weigh In:
- "The 119,000 job gain shows the economy is still expanding, but the pace is moderating as the Fed intended." - Goldman Sachs Chief Economist
- "Rising unemployment alongside job creation suggests labor market is normalizing after pandemic distortions." - JP Morgan Research
- "Healthcare sector continues to be the bedrock of job growth in America." - Morgan Stanley Analysis
- 2026 Forecast: Economists predict average monthly job gains of 100,000-125,000
- Unemployment Projection: Expected to stabilize around 4.3-4.5% through 2026
📝 For Competitive Exam Aspirants:
Key Facts to Remember:
- ✓ Jobs Added (September 2025): 119,000
- ✓ Unemployment Rate: 4.4% (up from 4.2%)
- ✓ Report Release Date: November 21, 2025
- ✓ Delay Reason: Federal government shutdown (28 days)
- ✓ Reporting Agency: Bureau of Labor Statistics (BLS)
- ✓ Department: US Department of Labor
- ✓ Wage Growth: 3.8% year-over-year
- ✓ Average Hourly Wage: $34.75
- ✓ Labor Force Participation: 62.8%
- ✓ Top Hiring Sector: Healthcare (+42,000 jobs)
About US Employment Data (For Exams):
- • Frequency: Monthly (first Friday of each month)
- • Official Name: "Employment Situation" report
- • Two Surveys: (1) Establishment Survey (payroll data), (2) Household Survey (unemployment rate)
- • Full Employment: Generally considered 4.0-5.0% unemployment
- • Federal Reserve Mandate: Maximum employment + price stability (dual mandate)
- • Current Fed Chair: Jerome Powell (appointed 2018, reappointed 2022)
- • FOMC: Federal Open Market Committee sets interest rates
Related Economic Terms:
- • Non-Farm Payrolls: Jobs added excluding agricultural sector
- • Labor Force Participation Rate: % of working-age population employed or seeking employment
- • U-6 Unemployment: Broader measure including underemployed (currently 8.1%)
- • Soft Landing: Slowing economy without causing recession
- • Basis Point: 0.01% (used in interest rate discussions)
Expected in Exams: UPSC Prelims/Mains (Economy section), SSC CGL, RBI Grade B, NABARD, SEBI, Banking (IBPS/SBI PO), UPSC EPFO, State PSC exams
📚 Previous Year Questions (PYQs) Pattern:
- • UPSC Prelims 2023: Question on US Federal Reserve's role in global economy (2 marks)
- • RBI Grade B 2024: Descriptive question on US labor market impact on Indian economy (5 marks)
- • IBPS PO 2024: Current Affairs question on unemployment rates of major economies (1 mark)
- • SSC CGL 2023: Question on Federal Reserve and its functions (2 marks)
- • UPSC Mains 2022: Essay topic covered US economic policy impact on emerging markets
💡 Exam Tip: US employment data often appears in Current Affairs, International Relations, and Economy sections. Focus on: unemployment rate trends, Federal Reserve policy responses, and comparison with other major economies.
Why This Matters for India
- ✓ US Federal Reserve policy influences global capital flows, affecting Indian stock markets
- ✓ US dollar strength/weakness impacts Indian rupee exchange rate
- ✓ US job market health affects demand for Indian IT services and exports
- ✓ Interest rate decisions impact FII (Foreign Institutional Investor) inflows into India
- ✓ US economic trends often signal global economic direction
— End of Report —
Sources:
- US Bureau of Labor Statistics, Federal Reserve reports, Bloomberg, Reuters, November 2025
- Goldman Sachs Economic Research, JP Morgan Analysis
