Some people measure how well the economy is doing by how much money a few rich men at the top are making. But other factors can give insight into how the rest of the 99% are doing. The unemployment rate is one of these factors. Almost two-thirds of American households live paycheck to paycheck, so losing a job and even just one paycheck can be devastating. Typically, unemployment data is released monthly, but analyzing that data is a government responsibility. October 2025 saw the start of the longest government shutdown in U.S. history. This resulted in the Bureau of Labor Statistics not releasing its September 2025 jobs report until November 20, 2025. Read on to learn more about changes in the job market and how they are affecting people across Arizona and the rest of the country. If you are struggling with debt and see little chance of that changing due to the current economy, you can learn more about bankruptcy without leaving your home. Schedule your free phone consultation with Atlas Bankruptcy Lawyers today at 602-649-4949 or for more information.
September 2025 Jobs Report
While things feel bleak right now, the September 2025 jobs report surprisingly contained some good news. There were 119,000 new jobs added to the national job market for the month. This is much needed after summer months reporting even weaker than originally thought. Previous reporting reflected that there were 73,000 new jobs in July 2025 and 22,000 new jobs in August 2025. The September 2025 jobs report redacted information, reducing the new jobs for those two months by 33,000. Despite all of the new jobs added in September 2025, the unemployment rate rose from 4.3% to 4.4%.
The effects of the government shutdown will be felt for months by anyone relying on federal agencies that were impacted. On November 19, 2025, the Bureau of Labor Statistics announced that the release date of the October 2025 jobs report would again be delayed, as will the November 2025 jobs report. The October 2025 jobs report will be released with the November 2025 jobs report, which was originally due December 5, 2025, but has been preemptively pushed back to December 16, 2025. At least one private firm has reported that there were 150,000 lost jobs in October 2025, mainly spurred by AI cutting human jobs. Other businesses have slowed down hiring due to the weak market, making it even harder for newly unemployed individuals to find a new source of income.
Strongest & Weakest Industries
Those feeling the effects of the increasing unemployment rate may want to turn their job search efforts towards industries with the most new jobs. Health care remains a strong industry, as AI can’t replace many of the tasks that medical professionals conduct with patients in-person. This sector added 43,000 new jobs in September 2025. Although restaurants are struggling with fewer customers dining out to keep up with the cost of living, food services and drinking places added 37,000 new jobs in September 2025. Social assistance was another promising field for September 2025, adding 14,000 new jobs.
The federal government has been cutting jobs for months, and this trend continued in September 2025. These losses were lower than in previous months at 3,000 lost jobs. Transportation and warehousing saw greater losses at 25,000 lost jobs. Industries that remained fairly stable include manufacturing, wholesale trade, mining, financial activities, professional and business services, and more.
Will Rising Unemployment Lead To Decreased Interest Rates?
Sometimes when the job market is weak, the Federal Reserve will cut interest rates. It did so in both September and October of this year. This can help stimulate the economy by making major purchases more affordable. Some households may be better able to afford purchasing a home and other large assets when the interest rates are reduced, even by a marginal amount. But upon the release of the September 2025 jobs report, future markets predict the interest rates to hold steady between 3.75% and 4% for December 2025. The Federal Reserve’s voting members are reportedly not in agreement on how to proceed in December, so the prediction that they will stay the same could be incorrect.
The Pipeline From Elevated Unemployment Rates To An Increase In Bankruptcy Filings
When someone loses their source of a paycheck, it often results in the accrual of debt. A common example is by relying on credit cards to pay for bills and groceries while on the hunt for a new job. Here, the individual spends with every intention of paying back the balance in full, or as close to full as possible, at the end of the month- but unexpected expenses continue to arise. They fall further and further behind, and interest increases the balance until they can only make the minimum monthly payment. If it is accruing faster than the person can pay off, even finding a new job might not fully solve the problem.
Historically, more than 2/3 of bankruptcy debtors report job problems as a reason behind their petition filing. The unemployment rate is about double in bankruptcy debtors as it is in the rest of the population. But unemployment doesn’t lead to bankruptcy immediately. It is often far more beneficial for the debtor to wait a while after losing their job before filing a petition with the bankruptcy court. There are a few reasons for this. One, a debtor typically won’t know how long their unemployment will last shortly after losing their job. Debt begins accruing again after the petition has been filed, so it is typically better to wait to file for bankruptcy until the employment situation has been resolved- although there are emergency circumstances that can create an exception. Examples include an impending home foreclosure, wage garnishment, or creditor lawsuit.
The longer the debtor remains unemployed, the more their average monthly income goes down, which may make it easier to qualify for chapter 7 bankruptcy. Filing for chapter 13 bankruptcy before finding a new job can be difficult because the debtor will likely need to amend their plan payments after securing new employment. The debtor may also need to keep using credit cards until finding a new job, which becomes impossible after filing a bankruptcy petition. So many factors can affect when someone who recently lost their job should file for bankruptcy. Discuss them with an experienced bankruptcy professional today at 602-649-4949 to learn more.
Does September’s Job Report Change Your Financial Outlook? Discuss Your Debt Relief Options With An Arizona Bankruptcy Professional Today
While September saw the creation of thousands of new jobs, it may not be enough to compensate for losses during the summer and bolster our economy. Falling into debt is becoming a more understandable situation every day. Getting out of it can take guidance from an experienced Atlas bankruptcy law firm. Our dedicated staff and attorneys remove some of the burden from your shoulders, and you can eliminate creditor calls as soon as you retain. Pay for your bankruptcy in affordable, zero-interest installments that begin after your case has been filed. Learn more with your free consultation today at 602-649-4949 for more information.
