The U.S. labor market nearly stalled in September, with only 29,000 net jobs added, falling far short of economists’ expectations. The unemployment rate ticked up from 4.1% to 4.2%, signaling a sharp slowdown in hiring.
The restaurant industry was no exception to the slowdown, adding 10,800 jobs in September, roughly one-third of the 33,800 jobs added in August. However, foodservice fared better overall than most other industries, behind only health care and construction in job growth rates.
A hiring slowdown at this time of year is also not unusual. Restaurant employment typically faces seasonal pressure in September as summer comes to an end and student workers head back to school.
This year, restaurants and bars added 10,800 jobs on a seasonally adjusted basis, while their unadjusted employment fell by about 148,400 jobs from August to September.
The foodservice labor market this summer was also fairly uneven. The start of the summer season was particularly tough for restaurants, as restaurants and bars saw job losses in both June and July. But then last month, the industry saw a significant improvement, with restaurant hiring leading all other industries in August.
The September gain was also considerably smaller than in some recent years. In September 2024, for example, food services and drinking places added 69,000 jobs, well above the 14,000 average monthly gain for the prior 12 months at the time. In September 2025, the industry added 37,000 jobs.
On a positive note, the seasonal hiring pullback was smaller than last year. The foodservice industry ended September with 12.393 million jobs, up by 109,100 jobs year-over-year, or roughly 0.9% above September 2025 levels.
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