NCCI’s Labor Market Insights – October 2026 now available. For your convenience, see the insights below:
- Job growth weakened in September, adding 29,000 jobs on net overall and 46,000 in the private sector. Weaker September growth was coupled with downward revisions to July and August of a combined 60,000 jobs.
At an industry level, the job market looked like it was at a standstill, with very little gain or loss across industries. The largest employment gain was 23,000 jobs in health care and the largest employment decline was 17,000 jobs in government. All other industries were either side of zero.
- The slowdown in employment growth is finally starting to show up in wages. Average hourly earnings growth has slowed to 3.0% year-over-year; however, rising average hours worked per week has kept average weekly wage growth elevated between 3.5% and 4.0%
- September saw a large increase in labor force participation, reversing the decline we saw in June. An increase in participation from new labor force entrants led to a higher unemployment rate in September while those losing or leaving a job declined. Continued low hires and separations rates also support a low-mobility environment.
Big Picture: The weak employment report in September was a reversal of the stronger report we saw in August. On net over the past five months the labor market appears to be mired in the same sluggish environment experienced in 2025.
