US unemployment below 5% approaches historic record not seen since mid-1960s
US unemployment below 5% approaches historic record not seen since mid-1960s
Brian SozziMon, October 5, 2026 at 12:22 PM UTC
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For many US households, it may not feel like the economy is doing well amid the higher cost of living brought on by the US war on Iran.
But believe it or not, the US economy is nearing an impressive achievement on the unemployment front.
The US unemployment rate is nearing a record number of consecutive months below 5%, Truist chief strategist Keith Lerner pointed out (see the chart below). The longtime record dates back to the mid-1960s.
It's a worthwhile perspective to keep in mind as markets attempt to rationalize a surprisingly weak September jobs report.
An economic record is likely to fall soon.
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.
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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. That put 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.
"Recent data also reinforced what we have been seeing in terms of this very low hire, but also very low fire condition, including the idea that while there is selective weakening in some areas, the labor market as a whole remains decent," said Rick Rieder, BlackRock's chief investment officer of global fixed income.
Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show, the 'Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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