Payroll Employment Rises by 194,000 in September, Unemployment Rate Declines to 4.8%

Total nonfarm payroll employment rose by 194,000 in September, and the unemployment rate
fell by 0.4 percentage point to 4.8 percent, the U.S. Bureau of Labor Statistics reported 
today. Notable job gains occurred in leisure and hospitality, in professional and business
services, in retail trade, and in transportation and warehousing. Employment in public
education declined over the month. 

This news release presents statistics from two monthly surveys. The household survey measures
labor force status, including unemployment, by demographic characteristics. The establishment
survey measures nonfarm employment, hours, and earnings by industry. For more information
about the concepts and statistical methodology used in these two surveys, see the Technical
Note.

Household Survey Data

The unemployment rate fell by 0.4 percentage point to 4.8 percent in September. The number
of unemployed persons fell by 710,000 to 7.7 million. Both measures are down considerably
from their highs at the end of the February-April 2020 recession. However, they remain
above their levels prior to the coronavirus (COVID-19) pandemic (3.5 percent and 5.7 million,
respectively, in February 2020). (See table A-1. See the box note at the end of this news release
for more information about how the household survey and its measures were affected by the
coronavirus pandemic.)

Among the major worker groups, the unemployment rates for adult men (4.7 percent), adult
women (4.2 percent), Whites (4.2 percent), and Blacks (7.9 percent) declined in September. 
The jobless rates for teenagers (11.5 percent), Asians (4.2 percent), and Hispanics (6.3 
percent) showed little change over the month. 

Among the unemployed, the number of permanent job losers declined by 236,000 to 2.3 million
in September but is 953,000 higher than in February 2020. The number of persons on temporary
layoff, at 1.1 million, changed little in September. This measure is down considerably from
the high of 18.0 million in April 2020 but is 374,000 above the February 2020 level. The
number of reentrants to the labor force decreased by 198,000 in September to 2.3 million,
after increasing by a similar amount in August. (Reentrants are persons who previously worked
but were not in the labor force prior to beginning their job search.) 

The number of long-term unemployed (those jobless for 27 weeks or more) decreased by 496,000
in September to 2.7 million but is 1.6 million higher than in February 2020. The long-term 
unemployed accounted for 34.5 percent of the total unemployed in September. The number of
persons jobless less than 5 weeks, at 2.2 million, changed little. 

The labor force participation rate was little changed at 61.6 percent in September and has
remained within a narrow range of 61.4 percent to 61.7 percent since June 2020. The 
participation rate is 1.7 percentage points lower than in February 2020. The employment-
population ratio, at 58.7 percent, edged up in September. This measure is up from its low
of 51.3 percent in April 2020 but remains below the figure of 61.1 percent in February 2020.

In September, the number of persons employed part time for economic reasons, at 4.5 million,
was essentially unchanged for the second month in a row. There were 4.4 million persons in
this category in February 2020. These individuals, who would have preferred full-time
employment, were working part time because their hours had been reduced or they were unable
to find full-time jobs. 

The number of persons not in the labor force who currently want a job was 6.0 million in
September, little changed over the month but up by 959,000 since February 2020. These
individuals were not counted as unemployed because they were not actively looking for work 
during the last 4 weeks or were unavailable to take a job.  

Among those not in the labor force who wanted a job, the number of persons marginally 
attached to the labor force edged up to 1.7 million in September, following a decline in 
the prior month. These individuals wanted and were available for work and had looked for a 
job sometime in the prior 12 months but had not looked for work in the 4 weeks preceding the
survey. The number of discouraged workers, a subset of the marginally attached who believed
that no jobs were available for them, was 450,000 in September, little changed from the 
previous month.  

Household Survey Supplemental Data 

In September, 13.2 percent of employed persons teleworked because of the coronavirus pandemic,
little changed from the prior month. These data refer to employed persons who teleworked or
worked at home for pay at some point in the last 4 weeks specifically because of the pandemic. 

In September, 5.0 million persons reported that they had been unable to work because their
employer closed or lost business due to the pandemic--that is, they did not work at all or
worked fewer hours at some point in the last 4 weeks due to the pandemic. This measure is
down from 5.6 million in August. Among those who reported in September that they were unable
to work because of pandemic-related closures or lost business, 15.5 percent received at least
some pay from their employer for the hours not worked, little changed from the prior month. 

Among those not in the labor force in September, 1.6 million persons were prevented from 
looking for work due to the pandemic, little changed from August. (To be counted as unemployed,
by definition, individuals must be either actively looking for work or on temporary layoff.) 

These supplemental data come from questions added to the household survey beginning in May
2020 to help gauge the effects of the pandemic on the labor market. The data are not seasonally
adjusted. Tables with estimates from the supplemental questions for all months are available
online here. 

Establishment Survey Data

Total nonfarm payroll employment increased by 194,000 in September. Thus far this year, monthly
job growth has averaged 561,000. Nonfarm employment has increased by 17.4 million since a
recent trough in April 2020 but is down by 5.0 million, or 3.3 percent, from its pre-pandemic
level in February 2020. In September, notable job gains occurred in leisure and hospitality,
in professional and business services, in retail trade, and in transportation and warehousing.
Employment in public education declined over the month. 

Employment in leisure and hospitality increased by 74,000 in September, with continued job growth
in arts, entertainment, and recreation (+43,000). Employment in food services and drinking places
changed little for the second consecutive month, compared with an average monthly gain of 197,000 
from January through July. Employment in leisure and hospitality is down by 1.6 million, or 9.4
percent, since February 2020.

Professional and business services added 60,000 jobs in September. Employment continued to increase
in architectural and engineering services (+15,000), management and technical consulting services
(+15,000), and computer systems design and related services (+9,000). Employment in professional
and business services is 385,000 below its level in February 2020.

In September, employment in retail trade rose by 56,000, following 2 months of little change. Over
the month, employment gains occurred in clothing and clothing accessories stores (+27,000), general
merchandise stores (+16,000), and building material and garden supply stores (+16,000). These
gains were partially offset by a loss in food and beverage stores (-12,000). Retail trade employment
is 202,000 lower than its level in February 2020.

Employment in transportation and warehousing increased by 47,000 in September, in line with gains
in the prior 2 months. In September, job gains continued in warehousing and storage (+16,000),
couriers and messengers (+13,000), and air transportation (+10,000). Employment in transportation
and warehousing is 72,000 above its pre-pandemic level in February 2020.

Employment in the information industry increased by 32,000 in September. Gains occurred in motion
picture and sound recording industries (+14,000); in publishing industries, except Internet (+11,000);
and in data processing, hosting, and related services (+6,000). Employment in information is down
by 108,000 since February 2020.

In September, social assistance added 30,000 jobs, led by a gain in child day care services (+18,000).
Employment in social assistance is 204,000 lower than in February 2020.

Employment in manufacturing increased by 26,000 in September, with gains in fabricated metal products
(+8,000), machinery (+6,000), and printing and related support activities (+4,000). These gains 
were partially offset by a decline of 6,000 in motor vehicles and parts. Manufacturing employment
is down by 353,000 since February 2020.

Construction employment rose by 22,000 in September but has shown little net change thus far this
year. Employment in construction is 201,000 below its February 2020 level.

In September, employment in wholesale trade increased by 17,000, almost entirely in the durable goods
component (+16,000). Employment in wholesale trade is down by 159,000 since February 2020.

Mining employment continued to trend up in September (+5,000), reflecting growth in support activities
for mining (+4,000). Mining employment has risen by 59,000 since a trough in August 2020 but is 93,000
below a peak in January 2019.

In September, employment decreased by 144,000 in local government education and by 17,000 in state 
government education. Employment changed little in private education (-19,000). Most back-to-school
hiring typically occurs in September. Hiring this September was lower than usual, resulting in a 
decline after seasonal adjustment. Recent employment changes are challenging to interpret, as pandemic-
related staffing fluctuations in public and private education have distorted the normal seasonal 
hiring and layoff patterns. Since February 2020, employment is down by 310,000 in local government 
education, by 194,000 in state government education, and by 172,000 in private education.

Employment in health care changed little in September (-18,000). Job losses occurred in nursing and
residential care facilities (-38,000) and hospitals (-8,000), while ambulatory health care services
added jobs (+28,000). Employment in health care is down by 524,000 since February 2020, with nursing
and residential care facilities accounting for about four-fifths of the loss.  

In September, employment showed little change in financial activities and in other services.

Average hourly earnings for all employees on private nonfarm payrolls rose by 19 cents to $30.85 in
September, following large increases in the prior 5 months. In September, average hourly earnings
of private-sector production and nonsupervisory employees rose by 14 cents to $26.15. The data for
recent months suggest that the rising demand for labor associated with the recovery from the
pandemic may have put upward pressure on wages. However, because average hourly earnings vary 
widely across industries, the large employment fluctuations since February 2020 complicate the
analysis of recent trends in average hourly earnings. 

In September, the average workweek for all employees on private nonfarm payrolls increased by 0.2
hour to 34.8 hours. In manufacturing, the average workweek was unchanged at 40.4 hours, and overtime
edged up by 0.1 hour to 3.3 hours. The average workweek for production and nonsupervisory employees
on private nonfarm payrolls increased by 0.1 hour to 34.2 hours. 

The change in total nonfarm payroll employment for July was revised up by 38,000, from +1,053,000 to
+1,091,000, and the change for August was revised up by 131,000, from +235,000 to +366,000. With 
these revisions, employment in July and August combined is 169,000 higher than previously reported.
(Monthly revisions result from additional reports received from businesses and government agencies
since the last published estimates and from the recalculation of seasonal factors.)