US Unemployment Rate Nears Record Streak Below 5%

Yahoo Finance·5 Oct 2026·

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Summary · why it matters

The US unemployment rate is approaching a historic record for consecutive months below 5%, a streak not seen since the mid-1960s, according to Truist chief strategist Keith Lerner. The milestone comes as markets weigh a surprisingly weak September jobs report, in which employers added just 29,000 jobs, far below economists' expectations for roughly 90,000 and below the prior 12-month average monthly gain of 45,000. July's employment was revised from a 21,000 gain to a 10,000 decline, and August's employment was cut from 162,000 to 133,000, putting the two-month revision at 60,000 fewer jobs than previously reported. The unemployment rate ticked up to 4.2% from 4.1%, while the labor-force participation rate held at 61.8%, suggesting the rise in unemployment was modest rather than a sign of a sudden labor-market collapse. Rick Rieder, BlackRock's chief investment officer of global fixed income, said recent data reinforced a very low hire, but also very low fire condition, with the labor market as a whole remaining decent despite selective weakening in some areas.