US Private Sector Added 90,000 Jobs in September, Topping Expectations

After a period of robust hiring, the US job market began to show mixed signals in late summer 2026. Job openings fell to their lowest level since March, suggesting that employers were growing more cautious about expanding their workforces. However, layoffs remained subdued, and job security for most American workers was strong. As September approached, there was anticipation about whether hiring would pick up or continue to slow.

On September 29, reports showed that US job openings had dropped to 7.08 million in August, the lowest in five months. This signaled waning demand for new hires. At the same time, layoffs remained low and unemployment claims were steady, indicating that employers were not rushing to cut staff.

By September 30, new data from ADP revealed that private sector job creation had accelerated, with 90,000 jobs added in September, notably higher than economists' expectations. Education and healthcare were the main drivers, responsible for 61 percent of the net job gains. This suggested that hiring in these sectors remained resilient, even as other industries slowed.

Meanwhile, separate data showed that unemployment assistance claims dropped to their lowest levels since mid-July, and layoffs in September fell 18 percent from August. Despite these positive signals, official government payroll figures released on October 2 pointed to a much slower labor market, with only 29,000 jobs created in September. The unemployment rate ticked up to 4.2 percent, and wage growth slowed, reflecting increased employer caution in the face of rising costs and economic uncertainty.

The US labor market is sending mixed signals as of early October 2026. Private sector hiring, as measured by ADP, showed robust gains led by education and healthcare. Yet, the official payroll report painted a weaker picture, with significantly fewer jobs added and a slight rise in unemployment.

Layoffs remain low and workers continue to enjoy job security, but the conflicting job creation data has added uncertainty about the true strength of the US labor market. Economists and policymakers are watching closely for signs of whether hiring will rebound or continue to slow in the months ahead.

The key question is whether the strong ADP numbers or the weaker official payroll data will prove to be a better guide to future hiring trends. Upcoming reports on job openings, wage growth, and unemployment claims will be important for understanding if the labor market is truly stabilizing or entering a period of slower growth.