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Unemployment just hit its highest point in nearly four years

After a record shutdown delay, the September jobs report shows unemployment up to 4.4%, job growth below norms, and pay rising faster than inflation.

The September 2025 BLS report, delayed by a record government shutdown, shows unemployment rising to 4.4%, the highest in nearly four years. The economy added 117,000 jobs, below historic norms. Pay grew 3.8% year-over-year. The data may prompt the Fed to lower interest rates at its Dec. 9–10 meeting.

Unemployment just hit its highest point in nearly four years

By: Justin Boggs , Stephanie Liebergen

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After a nearly six-week delay caused by the longest government shutdown in U.S. history, the Bureau of Labor Statistics released its September 2025 economic report Thursday. The report showed the unemployment rate rose slightly to 4.4%, with hiring still below historic norms.

The data will help guide the Federal Reserve in deciding whether to adjust interest rates. The Federal Open Market Committee meets Dec. 9–10 and is expected to lower rates.

HOW JOBS AND INTEREST RATES INTERACT

September’s unemployment rate was the highest in nearly four years after a stretch of unusually low joblessness. The economy added 117,000 jobs in September — an improvement from August’s weak gain of 22,000, and above some expectations — but still below the decade-long monthly average of 146,000.

Worker pay continues to outpace inflation, with average weekly earnings rising 3.8% between September 2024 and September 2025.

The BLS issues preliminary employment reports each month based on its Current Employment Statistics survey of employers. The estimates are released just days after the month ends and may be revised later.

The agency’s data has faced heightened scrutiny since President Donald Trump fired BLS Commissioner Erika McEntarfer in August following a disappointing jobs report.