US Unemployment Rate Rises to 4.2% in September

The US unemployment rate rose to 4.2% in September 2026, up from 4.1% in August and slightly above market expectations of 4.1%. The number of unemployed increased by 78,000 to 7.11 million, while total employment surged by 406,000 to 163.15 million. The labor force expanded by 485,000 to 170.26 million, pushing the labor force participation rate up to 61.8% from 61.6%. The employment-to-population ratio also edged higher to 59.2%. Meanwhile, the broader U-6 unemployment rate, which includes unemployed, underemployed and marginally attached workers, eased to 7.6% from 7.7%.

The US unemployment rate remained unchanged at 4.1% in August 2026, in line with market expectations. The number of unemployed increased by 115,000 to 7.03 million, while total employment surged by 569,000 to 162.75 million. The labor force expanded by 683,000 to 169.78 million, lifting the labor force participation rate to 61.6% from a five-year low of 61.4% in July. The employment-to-population ratio also edged higher to 59.1%. Meanwhile, the broader U-6 unemployment rate, which includes discouraged and underemployed workers, eased to 7.7% from 7.9%, pointing to a modest improvement in broader labor-market conditions.

The US unemployment rate dropped to 4.1% in July 2026, down from 4.2% in June and below expectations, as many people left the workforce. The number of unemployed fell by 178,000 to 6.916 million, while total employment declined by 87,000 to 162.177 million. The labor force contracted by 264,000 to 169.094 million, with the participation rate falling to 61.4%, its lowest since early 2021. The employment rate also dipped to 58.9%, the lowest since September 2021. The broader U-6 unemployment rate, which includes discouraged and underemployed workers, was unchanged at 7.9%.