October 2026 Talent Market Insights
The latest U.S. Bureau of Labor Statistics (BLS) jobs report shows limited movement in the labor market in September. Employers added 29,000 jobs during the month, while the unemployment rate remained relatively steady at 4.2%.
Labor force participation and employment across major industries also changed little, pointing to a labor market where both hiring activity and labor availability saw limited change.
Key Takeaways from the September 2026 Jobs Report
29,000 jobs were added in September
Unemployment was 4.2%
Labor force participation was 61.8%
Average hourly earnings increased 0.1% in September and 3.0% over the past 12 months
July and August job gains were revised downward by a combined 60,000 jobs
Employment changed little across all major industries
Job Growth by Industry
Employment remained relatively stable across major industries in September, with BLS reporting little change across all major sectors.
Industries adding jobs:
Health care: +17,000
Construction: +11,000
Manufacturing: +9,000
Within manufacturing, plastics and rubber products added 5,000 jobs and machinery manufacturing added 5,000. Overall manufacturing employment is up 72,000 jobs since December 2025.
Industries with little or no change:
Transportation and warehousing
Retail trade
Professional and business services
Leisure and hospitality
Government
Industries losing jobs:
Financial activities: -7,000
Unemployment and Labor Force Participation
The unemployment rate was 4.2% in September, continuing a period of relatively little movement. Labor force participation was also little changed at 61.8%.
Additional labor supply indicators include:
Long-term unemployed: 1.9 million
People working part time for economic reasons: 4.5 million
People not in the labor force who currently want a job: 5.8 million
Marginally attached to the labor force: 1.5 million
Discouraged workers: 414,000
Wage Growth and Hours Worked
Wages continued to increase in September, although at a slower monthly pace, while average hours worked remained unchanged.
Average hourly earnings: up 0.1% in September and 3.0% over the past 12 months
Average workweek: unchanged at 34.4 hours
Manufacturing workweek: unchanged at 40.6 hours
Manufacturing overtime: unchanged at 3.0 hours
What Employers Can Do Now
Know What Problem You're Solving
Before investing more in recruiting, employers should take a closer look at what's driving their workforce challenges. Reviewing early-tenure turnover and identifying when employees are leaving can help uncover gaps in onboarding, training, pay, scheduling, or job expectations.
Understanding where these challenges are coming from can help employers determine whether they need to focus on attracting new employees, retaining their current workforce, or both.
Build Flexibility Into Your Workforce Strategy
Workforce needs can shift quickly with changes in production, turnover, and seasonal demand. Having a flexible staffing strategy can help employers respond to those changes without overcommitting to one approach.
Reviewing where temporary, temp-to-hire, or direct-hire support makes the most sense can help employers meet current staffing needs while preparing for changes in workload and hiring demand.
Make Workforce Decisions Locally
National jobs data provides an important benchmark, but hiring conditions can look very different depending on location, industry, occupation, shift, and required experience.
Employers can pair national trends with local labor market data—including available talent, advertised wages, competitor hiring activity, and job posting trends—to get a clearer picture of what is happening in the markets where they hire.
Want to Learn More About Hiring Trends in Your Local Market?
At Verstela, we help employers turn labor market data into practical workforce decisions.
Whether you're planning for changing production needs, struggling to fill key roles, or looking to improve workforce retention, our team can help you understand the labor market conditions affecting your business.