The U.S. economy added 119,000 jobs in September 2025, continuing a prolonged period of weak hiring with little net job growth since April. The unemployment rate held at 4.4%, leaving 7.6 million individuals unemployed both higher than a year earlier. While healthcare, food services, and social assistance saw steady increases, transportation and warehousing posted notable job losses, and federal employment continued its decline.

For tire manufacturers, distributors, and service providers, September’s report presents a mixed backdrop: payrolls came in stronger than expected, but unemployment rose to its highest level in over a year. With transportation and warehousing losing 25,000 jobs and manufacturing remaining flat, the labor environment tied directly to tire demand continues to soften.

This report was released more than six weeks late due to the federal government shutdown, which also interrupted October data collection and will affect reporting for the months ahead.

Key Highlights

BLS data for September reveals a labor market that has flattened considerably, with modest hiring, lingering joblessness, and signs of growing structural slack.

Here are some of the highlights:

• Unemployment held at 4.4%, with 7.6 million unemployed, up from 6.9 million a year earlier.

• Long-term unemployment was stable at 1.8 million, making up 23.6% of all unemployed.

• The labor force participation rate was unchanged at 62.4%, and the employment-population ratio stayed at 59.7% — both flat for the year.

• Part-time for economic reasons held steady at 4.6 million.

• The number of people who want a job but are not in the labor force fell to 5.9 million, reversing last month’s spike.

• Unemployment rose for adult women and Asian workers, while other groups saw minimal movement.

Sector Movement: Healthcare and Food Services Lead Modest Gains

Hiring was concentrated in a narrow set of service industries while major goods-producing and industrial sectors saw little to no change.

Industries with job gains:

• Healthcare: +43,000
  • Ambulatory care: +23,000

  • Hospitals: +16,000

• Food services & drinking places: +37,000

• Social assistance: +14,000
  • Individual & family services: +20,000

Industries with job losses:

• Transportation & warehousing: –25,000
  • Warehousing & storage: –11,000

  • Couriers & messengers: –7,000

• Federal government: –3,000
  • Now 97,000 jobs below the January peak

Most other major sectors including construction, manufacturing, retail, wholesale trade, and professional services remained flat.

Wages and Hours

• Average hourly earnings increased by $0.09 (0.2%) to $36.67, up 3.8% year-over-year.

• Production and nonsupervisory workers: +$0.08 to $31.53.

• Average workweek remained 34.2 hours, with production workers edging up to 33.7 hours.

Revisions: July & August Revised Downward

• July revised from +79,000 → +72,000 (–7,000)

• August revised from +22,000 → –4,000 (–26,000)

Combined, payrolls were 33,000 lower than previously reported, reinforcing the pattern of weaker labor momentum.

Shutdown Impact: Data Delays & Disruptions

Because of the lapse in federal appropriations:

• September data collection was partially completed early, boosting the response rate.

• No October Employment Situation report will be published.

• October household data will not exist at all (not collected during shutdown).

• November data will be delayed until December 16, 2025, with extended processing time.

These disruptions will create volatile or incomplete labor data in upcoming releases.

Looking Ahead: A Labor Market Stuck in Neutral

With hiring stagnating, unemployment inching higher year-over-year, and key industrial sectors weakening, the labor market is entering a period of slow, uneven growth. Service sectors continue to carry the weight, while transportation, warehousing, and federal government jobs decline. Wage growth remains moderate, but persistent long-term unemployment and minimal movement across major industries point to softening conditions beneath the surface.

Overall, the tire industry is entering Q4 in a ‘slow hiring, low firing’ environment. Talent availability is improving at the margins due to the higher unemployment rate, but skilled industrial labor remains tight. With freight, warehousing, and manufacturing still flat or negative, tire companies should remain focused on retention, upskilling, and targeted recruiting rather than broad expansion.

The shutdown-related gaps will further complicate the labor picture in Q4, making November’s report an especially important indicator of direction heading into 2026.