The U.S. economy added 119,000 jobs in September, according to the (significantly delayed) September jobs report published by the Bureau of Labor Statistics last week. That figure is “well above the gain of 50,000 jobs economists polled by The Wall Street Journal expected to see.”
The September jobs report was originally set to be published in early October but was delayed as a result of the federal government shutdown. (The October jobs report will not be published, according to the Bureau of Labor Statistics, due to the fact that household survey data could not be collected during the shutdown. November's jobs report will be published on December 16.)
Health care and food services saw gains, while transportation and federal government saw job losses:
Jobs were added in the healthcare (+43,000), food services (+37,000) and social assistance (+14,000) sectors.
Losses were seen in transportation and warehousing (-25,000) as well as in federal government roles (-3,000).
The unemployment rate "changed little":
The unemployment rate "edged up" from August, coming in at 4.4% in September, the highest since October 2021. Long-term unemployed people "accounted for 23.6 percent of all unemployed people."
The labor force participation rate came in at 62.4%, also little changed from August.
Average hourly earnings and average workweek:
Average hourly earnings for private nonfarm workers increased 0.2% to $36.67 in September. The average workweek was "unchanged at 34.2 hours." Manufacturing workers' average workweek “changed little at 39.9 hours.”
July and August reports were revised down:
July's jobs report was "revised down by 7,000, from +79,000 to +72,000," while August's was “revised down by 26,000, from +22,000 to -4,000.”
These numbers are a snapshot from two months ago and they don’t reflect where we stand now.
Read more via Bureau of Labor Statistics, The Wall Street Journal, NBC News, BLS Release Schedule, CNBC
Government data indicates unemployment rolls increased substantially between mid-September and mid-October, pointing to ongoing weakness in the U.S. labor market. The increase in unemployment claims suggests businesses remain hesitant to hire.
Continuing unemployment claims jumped significantly: The number receiving benefits (after an initial week of aid) rose 10,000 to 1.957 million during the week ending October 18, up from 1.916 million in mid-September.
The labor market is showing signs of stagnation: The substantial increase in continuing claims suggests higher unemployment ahead, consistent with sluggish hiring patterns.
The government shutdown resulted in data gaps: No official weekly claims data had been published since late September due to the 43-day government shutdown, with the White House warning that October's unemployment rate likely won't be published after the historic shutdown prevented household data collection.
Read more via Yahoo Finance
New hires are accounting for a growing share of the U.S. workforce, despite the fact that job creation is slowing, according to a new report by ADP. The seeming paradox can be explained by demographic shifts, as employers increasingly hire to replace departing workers rather than expand headcount.
If hiring has slowed, why are new hires a growing share of the workforce?
The prevailing wisdom is that the share of new hires "typically fluctuates with the business cycle."
The "aging U.S. workforce" means that "employers are hiring to replace existing workers, not increase headcount."
As workforce ages, replacement hiring dominates:
New hires now account for 4.4% of employment, compared to just 3.9% in 2019.
Demographics now drive hiring decisions more than business cycles.
This growing share of new hires would seem to run counter to the slowed pace of hiring … New hires typically fluctuates with the business cycle, but the aging U.S. workforce means that demographics have begun playing a bigger role in hiring decisions. Employers are hiring to replace existing workers, not increase headcount."
Read more via ADP Research
Last week, the Trump administration announced its "plan to continue dismantling" the Department of Education. The administration says U.S. taxpayers are currently paying for "progressive social experiments and obsolete programs."
The DOE closure was announced in a March 2025 Executive Order:
Back in March, President Trump signed an Executive Order announcing his administration's plan to shut down the Department of Education.
In that order, President Trump noted "reading and math scores are near historical lows" and called the federal education agency dysfunctional.
Secretary of Education Linda McMahon said in March that the administration's Executive Order was a way of "sending education back to the states where it so rightly belongs."
What exactly is happening to the Department of Education?
Technically, the DOE "is not gone" since "only Congress has the power to abolish it."
The DOE's role with respect to "supporting academics at elementary and high schools and in expanding access to college" is ending.
The work being done by the DOE will soon be "spread across four other federal departments," with those agencies managing "programs related to K-12 education, postsecondary education and more." (Oversight of K12 programs will be handled by the Department of Labor, while "other responsibilities will be transferred" to the Department of Health and Human Services (HHS), the Department of Interior and the Department of State.
Back in March, the administration said oversight of special needs programs would be moved to the Department of Health and Human Services. Last week, the administration said it is "still exploring the best plan" related to the DOE's Office of Special Education and Rehabilitative Services (OSERS) and the Office for Civil Rights (OCR).
What do critics say about the decision to close the DOE?
Some officials within school districts and states say the administration's course of action "appears to add more bureaucracy" and offers "no clear benefit for students who struggle with math or reading."
Critics in some states say dismantling the DOE could "complicate their role as intermediaries between local schools and the federal government." Wisconsin state superintendent Jill Underly told the Associated Press that "states were not engaged in this process."
Others say the plan will create confusion for both educators, parents and students.
U.S. Senator Lisa Murkowski posted on X that "moving programs to agencies without policy expertise could hurt young people."
School districts are anxious about what the changes could mean:
Many schools receive millions in funding aimed at "support services for students who are low-income, homeless or still mastering English," something school leaders worry could change or come with new rules and requirements.
Advocates are concerned about how DOE closure will impact special education:
Special needs advocates are "concerned that the learning experience schools offer to students who have disabilities could revert back in time."
Secretary of Education Linda McMahon said in March that closing the DOE would not mean "cutting off funds from those who depend on them." McMahon said the administration would "continue to support K-12 students, students with special needs … and others who rely on essential programs."
The Individuals with Disabilities Education Act (IDEA) and individual education programs (IEPs) "will remain in place for the 7.5 million students across the U.S. who rely on them in schools," according to the administration.
Read more via Associated Press, The New York Times, EdSurge, Department of Education, The White House, Disability Scoop
According to news reports, the Trump administration's One Big Beautiful Bill (OBBA) has "changed the definition of what is considered a professional program, as well as the eligibility to receive up to $200,000 in student loans" and nursing has been excluded.
Undergraduate loans will be capped under the OBBA and "only students pursuing a "professional" degree can borrow up to $50,000 annually."
The Department of Education recognized the following fields as "professional programs": medicine, pharmacy, dentistry, optometry, law, veterinary medicine, osteopathic medicine, podiatry, chiropractic, theology and clinical psychology.
Nursing was excluded from the list of "professional programs." Other roles like physician assistants, nurse practitioners, physical therapists and audiologists were also excluded, meaning the cap on federal student loans will apply to students pursuing those programs as well.
Critics of the decision say it will make it "harder and more expensive" to pursue a nursing degree, especially for "those from underrepresented or economically disadvantaged backgrounds."
Under the changed rules, which are set to take effect in July 2026, "graduate nursing students will lose access to higher federal loan limits previously available to professional degree programs."
Critics say the changes will "create significant financial obstacles for students pursuing advanced nursing education."
The American Nurses Association says the decision to exclude nursing "will restrict funding to nursing students and contribute to an already existing nurse shortage."
This will severely restrict access to critical funding for graduate nursing education, undermining efforts to grow and sustain the nursing workforce."
Read more via Yahoo.com, Nurse.org, American Nursing Association
95% of U.S. workers say their wages haven't kept pace with rising costs, forcing them to make widespread cuts to spending, savings, and retirement contributions, according to Monster's new survey of over 1,200 employees.
Highlights from Monster's survey of U.S. workers:
Just 9% of workers received raises or adjustments to offset higher living costs, while 75% say they have tapped into savings to cover basic expenses.
The percentage of workers saying they've had to cut non-essential spending increased from 69% in 2024 to 75% this year.
More than half (58%) of workers say they have delayed major purchases like homes or cars, and 55% reduced retirement or emergency fund contributions.
Over half (56%) are actively searching for higher-paying positions, though 69% report finding new jobs has become harder as hiring slows—up from 57% last year.
Financial pressure is driving workplace stress, with half worried about job security as employers cut costs and 40% reporting burnout linked directly to financial strain.
More than two in five (42%) have taken on new debt through credit cards or loans to manage daily expenses.
Read more via Monster.com
NOTE: The Need to Know Briefing will not be published on Monday, December 1. The next issue will be published on Monday, December 8.
80% of Americans worry an unexpected medical expense could disrupt their financial plans, according to a new Equitable survey of over 1,000 consumers.
Highlights from the survey:
Over 25% of Americans say even medical bills under $1,000 would cause them hardship.
Younger generations show significantly higher anxiety, with 89% of Gen Z and millennials saying unplanned medical costs would disrupt their financial plans. Just 56% of baby boomers said the same.
When faced with costly unplanned medical bills, 48% of respondents said they would set up payment plans, while 31% would tap general savings and 28% would rely on credit cards.
Read more via Equitable.com
Many UK employers are expecting workforce shrinkage due to AI over the next year, with clerical and junior professional positions most vulnerable, according to the latest Chartered Institute for Personnel and Development (CIPD) report.
Highlights from CIPD's survey of 2,000+ UK employers:
17% of surveyed employers anticipate workforce shrinkage due to AI over the next year.
Among employers expecting AI-driven reductions, nearly two-thirds (62%) identified clerical, junior managerial, professional, or administrative positions as most likely to be eliminated—with one-quarter anticipating losses exceeding 10% of their workforce.
Large private sector firms show highest vulnerability, with 26% expecting headcount declines compared to 17% across the private sector overall and 20% in public sector organizations.
Just 61% of employers plan to hire in the next three months. That figure is unchanged from recent quarters but down from 67% a year ago.
CIPD warns that "junior roles stand to be most affected by AI" and calls for urgent government action on skills development, cautioning that budget measures and the Employment Rights Bill risk dampening hiring for displaced workers and those with less experience.
Read more via CIPD.org
Eurostat data shows 8.2% of employed adults across the EU remained at risk of poverty in 2024, with significant variation by country and gender.
Poverty risk among employed workers varied dramatically by nation: Luxembourg recorded the highest rate at 13.4%, while Finland reported the lowest at just 2.8%.
Men faced higher poverty risk overall (9.0% versus 7.3% for women), with 22 EU countries showing elevated rates for male workers. The largest gender gap appeared in Romania at 8.1 percentage points.
Read more via SIA
Australia: Unemployment declined in October, indicating a still-tight labor market. Australia's economy "added more jobs than anticipated." Employment increased by 42,000, "more than double the expected 20,000 gain." (Bloomberg)
Germany: Manufacturing orders increased 1.1% in September, a jump from August's 0.4% decline. September's increase comes after four months of declines. (The Wall Street Journal)
Japan: GDP "contracted for the first time in six quarters" from July through September at an annualized rate of 1.8%, according to government data. Exports were down 1.2% from the prior quarter, suggesting tariffs have been a "major blow to Japan’s export-reliant economy." (Euronews)
South Africa: The country's unemployment rate declined "slightly" in the third quarter, with jobs "added in construction, social services and trade." South Africa's jobless rate was 31.9% in the third quarter, down from 33.2% in the second quarter. (Reuters)
Vietnam: The country's minimum wage (for contracted workers) will be increased by "over 7%." Experts say the pay hike "could potentially increase labour costs for companies." The new minimum wage will vary by region, from "3.7 million dong to 5.31 million dong ($141-$202) per month." (Reuters)
