US job market, October 2026: slow hiring, few quits and a costlier H-1B
· 3 min read
The US labour market is not collapsing, but it has gone quiet. Companies are adding few people, workers are staying where they are, and the cost of hiring from abroad has gone up. If you are hiring, that changes how you find people. If you are job hunting, it changes how long a search takes.
The numbers at a glance
| Indicator | Latest figure | Source |
|---|---|---|
| Nonfarm payrolls | +29,000 (September 2026) | BLS Employment Situation |
| Revisions to July and August | 60,000 lower than first reported | BLS Employment Situation |
| Unemployment rate | 4.2% (September 2026) | BLS |
| Average hourly earnings | $37.81, up 3.0% on a year earlier | BLS |
| Job openings | 7.1 million (August 2026) | BLS JOLTS |
| Quits rate | 1.9% (August 2026) | BLS JOLTS |
| Fed funds target range | 3.75%–4.00%, after a 0.25-point rise on 16 September 2026 | Federal Reserve |
A low-hire, low-quit market
September’s gain of 29,000 jobs was below the previous 12-month average of 45,000, and earlier months were revised down. Health care (+17,000), construction and manufacturing added jobs; government, information, professional services and finance shed them. Financial activities alone are down 129,000 from their May 2025 peak.
The more telling number is the quits rate of 1.9%. When people stop resigning, fewer vacancies open up behind them. That is why job seekers describe the market as frozen even though unemployment, at 4.2%, is not high by historical standards.
Hiring from abroad has become more expensive
The $100,000 payment for certain new H-1B petitions, first introduced in September 2025, was renewed in September 2026 for another year. The H-1B lottery is also now weighted towards higher wage levels. For many employers, sponsoring an entry-level or mid-level overseas hire no longer adds up.
What this means if you are hiring in the US
- Passive candidates are the market. With so few people quitting, the best candidates are not applying. Direct, well-researched approaches work better than adverts.
- Wage growth of 3.0% sets expectations. Offers that do not beat that clearly will struggle to move someone who feels safe where they are.
- Rethink roles that relied on sponsorship. Where the work allows, a contract or offshore team working US hours from Pakistan can fill engineering, finance and support roles without visa cost or delay.
What this means if you are looking for work
- Expect a longer search, and plan for it. Fewer openings and fewer resignations mean each role attracts more applicants.
- Follow the hiring. Health care, construction and skilled manufacturing are still adding jobs.
- International candidates: sponsored US roles are harder to come by, but remote contract work for US companies is a realistic route, especially in technology, finance and customer operations.
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Sources
- US Bureau of Labor Statistics, Employment Situation, September 2026
- US Bureau of Labor Statistics, Job Openings and Labor Turnover Survey, August 2026
- Federal Reserve, FOMC statement, 16 September 2026
- The White House: H-1B proclamation, September 2026
- Federal Register: weighted selection process for H-1B registrations
Figures are the latest available on 20 October 2026. The October jobs report is due in early November; we will update this page when it is published. This article is general information, not immigration or legal advice.
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