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U.S. Added 29,000 Jobs in September; Trump Hits Campaign Trail; Rep. Gabe Vasquez (D-NM) is Interviewed about the Economy; New Arrest Video of Mangione. Aired 9-9:30a ET

Aired October 02, 2026 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[09:00:00]

SARA SIDNER, CNN ANCHOR: Just 29,000 jobs last month. A major slowdown from August. Economists had expected employers to add about 90,000 jobs.

Now, this is the final jobs report before the critical midterm election with the state of the economy top of mind of voters.

CNN's Matt Egan is joining me now for more on this report.

Give us the sense of what this means, this number here, which much lower than what we saw in the last jobs report.

MATT EGAN, CNN : Yes, Sara, look, the job market, it did run into a bit of a soft patch in September, hiring, weaker than expected. Prior months were revised down. Unemployment unexpectedly went up. You put it together and this is a disappointment in the final jobs report before the midterms. So, top line numbers, 29,000 jobs added in September. That is a fraction of the 90,000 that was expected. And 4.2 percent is the unemployment rate. It was expected to stay at 4.1. It didn't.

Let's look at the trend for the unemployment rate. It ticked up just a little bit here. This is a three-month high. However, I do want to note that one of the reasons that unemployment went up is because more workers came off the sidelines. And that is a good thing.

Now, when we look at the trend for job growth going back to the start of last year, you can see that there was a really good number in August. However, this was revised a little bit lower. And then we also had a negative revision to July. July went from modestly positive to slightly negative. So, you can see how choppy it's been from month to month here. But again, disappointing number for September and negative revisions the prior two months.

Now, another important thing on the unemployment front is the black unemployment rate. We just learned that the black unemployment rate went from six percent in August to seven percent in September. Now, this is the highest since April. But not only that, this one percentage point increase, that is very rare. This is the biggest one- month jump for the black unemployment rate since Covid. And then outside of Covid, you got to go back to 2012 to have a bigger increase. So, this is something we've got to keep an eye on because in the past this has been a canary in the coal mine, when you see a big jump in the black unemployment rate. So again, something to monitor there.

Now the other really important news that came out is wages. So, we found out -- we know that the inflation rate in August was 3.4. And 3.6 is the estimate for September because of high gas prices, because of high diesel prices. Wages though were only three percent in the month. OK. Well, it's not working. That's fine. Three percent in -- there you go, in the month. So, this is a step in the wrong direction. It was 3.1 in August. The expectation was for 3.1 in September -- 3.2 was August. And so, three percent, not only is that in the wrong direction, but it's actually well shy of the inflation rate. So that means if you adjust paychecks for prices, they're shrinking.

And this is not a new trend. This is the sixth month in a row where you have shrinking real wages.

So, you put it together. This is a disappointing report. And given how gloomy the mood has been on main street, this is not going to help things because you have a situation where inflation is elevated, real wages are falling and job growth was disappointing.

SIDNER: Give us some sense, though, main street is going to act one way --

EGAN: Yes.

SIDNER: But Wall Street sees this differently.

EGAN: Absolutely. Look at this. Actually the stock futures were up even more than when we spoke just a few minutes ago.

SIDNER: Yes.

EGAN: So, we're seeing across the board about a one percent increase. Dow futures up 1.1 percent, 550 points. Futures extended their gains. And I think that's because the market is taking this as an all clear sign from the Fed that the Fed doesn't necessarily need to rush in and do another interest rate hike because job growth is a little bit cooler than anticipated and because, again, the unemployment rate, which they're watching very closely, went in the wrong direction. So, the market is likely pleased that this lowers the odds of another interest rate hike later this month.

SIDNER: Matt Egan, when you go back to those numbers, it is -- sort of gives you some sense of what Americans are feeling. And this is right on the heels of an election. We will see what happens and how this plays out. Thank you so much.

EGAN: Thank you, Sara.

SIDNER: John.

JOHN BERMAN, CNN ANCHOR: Yes, the president taking these tepid job numbers out on the campaign trail today. Not sure it's what he wanted. He's going to Alabama for the second day of a red state midterm blitz.

He was in Oklahoma and Texas 24 hours ago. All three of those states overwhelmingly he won them in 2024.

Let's get to CNN's Alayna Treene at the White House this morning.

It will be interesting to see how much the president talks about this new jobs report today. I'm betting not very much.

ALAYNA TREENE, CNN WHITE HOUSE CORRESPONDENT: Yes. And similarly, look, when it's come to the economy, this has been an issue, of course, that typically has won President Trump elections in the past. But if you look into some of the recent polling, his approval rating on the economy has sunk.

And that comes, as we know, that the president's overall job approval rating is now 33 percent, with 67 percent of Americans disapproving of his handling of the job. Like I mentioned, when you look into the poll numbers, dig deeper into the subcategories of how he's handling the economy, how he's handling foreign affairs, gas prices.

[09:05:04]

Hasn't been great for the president. And this is just another thing that's worrying some Republicans as we get closer to the midterm elections, just 31 or so days away now.

But look, the president, yesterday, visited Oklahoma and Texas. Today, he'll be heading to Alabama. The thing that these three states have in common is that they're all deeply red states, with, you know, many people questioning why is he spending time there in these elections? The president actually acknowledged that yesterday. He acknowledged that these races were not necessarily consequential for control of Congress, but argued that he's going to the states because he wants to see his supporters anyway.

But in places like Texas, for example, his support there and his time there is actually necessary. Texas, for example, the Senate candidate there, Ken Paxton, struggling a bit. Right now he's not very popular in Texas. And the president is trying to get him across the finish line.

This also comes, as we know, that "The New York Times" reported on leaked audio of Paxton saying that the president's midterm convention in Dallas last month actually hurt him more than it helped him.

But I do want you to listen to what the president said in his closing message, John, to Oklahoma yesterday, because he acknowledged that his team is concerned about some of these races.

Listen to how he put it.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're worried about Michigan. We're worried about Texas. We're worried about a few states. But it's all about 35 different contests, not states, contests. And I'm going to just about all of them.

(END VIDEO CLIP)

TREENE: So, you hear the president there, John, saying that he's going to go to just about all of these 35 different contests, referring to the battleground district that Republicans need to hang on to the majority in the House.

Look, from the conversations I've had with the president's advisers and outside Republican officials about the strategy here is they believe that the president can help boost turnout in some of these states. You've heard him mention in the past that he wants his supporters to pretend that he's on the ballot. That's because they're hoping that will help get these voters out to the polls on Election Day.

The catch 22, though, as some people have referred to it in my conversations with them, is that even though he's a great driver of enthusiasm among his own supporters, he's also a great driver of enthusiasm among Democrats. And so that could be an issue they face as he hits the campaign trail really aggressively in these next couple of weeks.

But all to say, the focus really at the White House currently is to try and get as many people out on Election Day as possible, even as they recognize that the map and some of the internal concerns around the election is beginning to sour among many of his top advisers and Republicans overall. So, look, a lot of work to do in the next couple of weeks, John.

BERMAN: All right, Alayna Treene for us at the White House this morning.

With us now is Congressman Gabe Vasquez, a Democrat from New Mexico.

Congressman, I just want to go over the brand-new jobs numbers that just came out. Job growth in September, 29,000, which is weaker than expected. The unemployment rate ticked up to 4.2 percent. And wage growth was three percent, which is weak. It's below inflation, which was 3.4 percent last month, projected to be 3.6 percent perhaps in September. So, what's your reaction to this news?

REP. GABE VASQUEZ (D-NM): Well, John, you know, I'm running in one of the most competitive House districts in the country, a district that was Republican for more than 40 years, the first Democrat to win back- to-back elections here. I call myself a dirt road Democrat. And I visit Republicans and Democrats in this big district. And the number one issue right now is the economy.

You know, everyone can see that as gas and diesel prices are continuing to skyrocket in New Mexico, families are digging under the couch for change to find gas money to take their kids to school. And the president, meanwhile, is hosting a private dinner for crypto millionaires, you know, raising $135 million for himself. And that's just this week. The president has failed on his promise to lower costs and stop the endless wars. In fact, he's done the exact opposite.

And so, in addition to these terrible job numbers, the raising, you know, of just domestic goods and the entanglement in this endless war with absolutely no end in sight or strategy, it's just adding insult to injury.

BERMAN: So, what do you say when you're out on the trail campaigning in this competitive district, as you say, if voters come up to you and say, hey, look, inflation was at nine percent under Joe Biden. You know, what will Democrats do this time to get prices down? How will Democrats make the economic situation better? What do you say?

VASQUEZ: Well, John, I recently talked to four ranchers and farmers in a very rural, conservative part of my district. They were Trump voters. And I sat down with them for nearly two hours.

[09:10:00]

And I talked to them about the president's tariffs, the war in Iran, Argentinian beef imports and the mass layoffs at USDA, and how they've impacted their businesses and their families. And they're outraged that this administration is on the brink of bankrupting their small family farms.

And so, I tell them that aside from reversing Trump's self-serving economic policies and the open corruption, Democrats like me have a message for voters, that we will work for you and your family. We're going to create a policy agenda that puts families back on level ground, brings down costs, lowers the cost of health care and medicine, and very important to my district, also brings forward real immigration reform proposals, which is a big key core component of some of the challenges my district faced, in particular with immigrant labor in our agricultural communities.

And so, we can do all of that while creating more high paying jobs, raising wages and helping people start businesses and achieve what is the fading American dream.

BERMAN: You said you were talking to farmers. I was just at Farm Aid in Virginia Beach helping raise money for distressed farmers, which are -- you know, who are struggling mostly because of diesel prices right now, or diesel prices are a big factor there. Would you support a diesel export ban?

VASQUEZ: You know, I support anything at this point to lower the cost of diesel. You know, right before I left Congress, I went and knocked on the door of a Republican from Iowa, Mr. Zach Nunn. And I said, Mr. Nunn, you have cattle growers in your district. I have cattle growers in my district. Their input costs are out of control.

I've got a bill called the Beef Act that ought to -- that immediately reverses the mass imports of beef into this country that threatens cattle growers all across the west and all across the country. And I said, you know, let's do the right thing for our nation. Let's do the right thing for our country. Let's sponsor this bill together. It's called the Beef Act. And he introduced this bill with me. A guy from Kansas, a guy from New Mexico, working together to bring down costs for ranchers.

And so, in addition to diesel costs, which are out of control, you know, all of the input costs, whether it's the cost of feed, or, in this case, the foreign imports of beef, are impacting farmers and ranchers. And, you know, that's going to lose Trump a ton of support in places where he traditionally has very strong support. And I'm hearing that directly from the folks in my district.

BERMAN: So, you're running you said in a district that's really a swing district in the middle of the road. You probably don't have your eyes on that many races around the country. But there is a question about whether Democrats have nominated the right candidates everywhere to win. One of those states is in Michigan, where Abdul El-Sayed is running against Mike Rogers.

And Fox News had a poll out this week. And one of the things that was interesting was that when you asked voters about their choices for governor and senator, more Democrats basically were going to vote for the gubernatorial candidate than Abdul El-Sayed. He lost 12 percent of Democrats who said they'd go vote for the Republican in the gubernatorial race, which was way bigger than the opposite scenario.

So, how concerned are you that there are some Democratic candidates who don't necessarily match their states or districts?

VASQUEZ: Well, you know, I can only talk about New Mexico and my district and how I've won this district that was traditionally a Republican district, a Trump district. You know, I beat a freedom caucus Republican to get into this seat by 0.6 percent, that's about a thousand votes, in 2022. And I can tell you, you know, authenticity really matters. And in every state, folks will choose their candidates. Whether they're right for the general public across the country or not, I can't tell you that. If that's the right candidate for Michigan or not.

But what I can tell you is that folks are sick and tired of the inaction in Congress. They're sick and tired of the corruption in Congress. They're sick and tired of paying more for everyday goods and health care. And so, as they see this corruption openly, look, they're open to all ideas from different ideologies, whether it's the Democratic Party or other ideologies, to finally get something done here in Washington, D.C.

And I share that frustration. That's one of the reasons that I ran for Congress. And so, I certainly think we have a great chance of both winning back the House and the Senate. And I hope candidates, like Mr. Abdul El-Sayed, can deliver a message to Michigan voters that puts Democrats back behind the wheel, back in control to stabilize this country.

BERMAN: Congressman Gabe Vazquez from New Mexico, we do appreciate your time this morning. Thanks so much for being with us.

Sara.

SIDNER: All right, thank you, John. Ahead, brand-new video this morning showing the arrest of Luigi Mangione after he had murdered the UnitedHealthcare CEO. We'll walk you through this newly unsealed footage that you're seeing first here on CNN.

Plus, we're standing by for a live update from New York's governor and attorney general on the Cornell gang rape investigation. We'll bring you to that as soon as it happens live.

And Customs putting the brakes on a multi-million-dollar pipeline that was sending hundreds of stolen cars overseas. We'll explain.

(COMMERCIAL BREAK)

[09:19:34

BERMAN: All right, new this morning, an exclusive first look at the moments police in Pennsylvania captured Luigi Mangione, ending a five- day manhunt in the killing of UnitedHealthcare CEO Brian Thompson. This newly unsealed body camera video, which came at CNNs request, showed -- begins with officers questioning him inside a McDonald's.

CNN's Kara Scannell, part of the team that got access to this really revealing video and is here now.

KARA SCANNELL, CNN CORRESPONDENT: Hey, John.

I mean we had asked the judge to unseal this because it was critical evidence that Maginoe's defense team was using to try to convince the judge to throw out this search, the results of that search, where they found the gun, the diary at the McDonald's and in the police station.

[09:20:15]

And the judge had seen this video in court in December, but had kept it under seal because he wasn't sure which way he was going to rule. And then after Mangione pleaded guilty to those federal charges, we asked for these videos to be unsealed. And as you can see from our compilation here, it kind of gives you a 360 view of what went down as this five-day manhunt came to an end.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Just do me a favor. Go ahead and stand up. I want to pat you down.

UNIDENTIFIED MALE: Quickly. Stand up.

LUIGI MANGIONE: This is a jar of peanut butter, by the way. You can take that but I'm just letting you know.

UNIDENTIFIED MALE: Yes. Just put your hands on the wall. I'm going to pat you down.

SCANNELL: Newly unsealed police body cam footage, first seen on CNN, shows the moments Altoona, Pennsylvania, police officers handcuffed Luigi Mangione and took him into custody, ending a five-day manhunt.

UNIDENTIFIED MALE: Keep your hands on the wall. OK. Left hand first. Bring your right hand back. All right.

SCANNELL: A New York state judge unsealed the footage at the request of CNN after Mangione pleaded guilty to federal stalking charges and admitted to fatally shooting UnitedHealthcare CEO Brian Thompson.

The videos were played during a suppression hearing last December, but have not been publicly released until now. Officers responded to a 911 call on December 9, 2024, that the suspected New York City CEO shooter may be in a McDonald's restaurant.

UNIDENTIFIED MALE: How you doing?

MANGIONE: Good.

UNIDENTIFIED MALE: Can you pull your mask down real quick for me.

MANGIONE: Yes, sure.

UNIDENTIFIED MALE: Appreciate it. Thank you. OK.

SCANNELL: The officers immediately thought it was him.

UNIDENTIFIED MALE: That's 100 percent him.

UNIDENTIFIED MALE: I told you, man.

UNIDENTIFIED MALE: That shooter checked into a hostel with a fake ID.

SCANNELL: Officers confront Mangione about a fake driver's license bearing the name Mark Rosario.

UNIDENTIFIED MALE: Is that your name, Mark Rosio? Rosaro?

MANGIONE: No, sir.

UNIDENTIFIED MALE: Then what's your real name?

MANGIONE: Luigi.

UNIDENTIFIED MALE: Luigi?

MANGIONE: Mangione.

UNIDENTIFIED MALE: Do you have your (INAUDIBLE) here? I'll write it down. Give me date of birth then too.

UNIDENTIFIED MALE: How do you spell your full name?

MANGIONE: L-u-i-g-i.

UNIDENTIFIED MALE: L-u-i-g-i.

MANGIONE: Mangione. M-a-n-g-i-o-n-e. UNIDENTIFIED MALE: Why are you lying about your name?

MANGIONE: Clearly I shouldn't have.

SCANNELL: A search reveals a gun magazine.

UNIDENTIFIED FEMALE: Guys, look at --

UNIDENTIFIED MALE: It's f-ing him, dude. It's f-ing him. One hundred percent.

SCANNELL: About ten minutes later, Mangione is taken to the police station.

Mangione is asked to remove layers of clothing so he can be searched more thoroughly, while another officer unzips his backpack and finds a gun that authorities later linked to the crime scene.

UNIDENTIFIED MALE: (INAUDIBLE). What's that?

UNIDENTIFIED FEMALE: There's a weapon. So, you want me to clear it?

UNIDENTIFIED MALE: Let's just clear it.

UNIDENTIFIED FEMALE: Clear it?

UNIDENTIFIED MALE: Yes.

UNIDENTIFIED FEMALE: We're good.

There's another magazine that was hidden in his underwear, in this underwear. F, silencer.

SCANNELL: She also finds Mangione's handwritten notes.

UNIDENTIFIED FEMALE: It looks like a journal.

UNIDENTIFIED MALE: Bag it?

UNIDENTIFIED FEMALE: I would.

SCANNELL: While a different officer ticks off the evidence, including a checklist.

UNIDENTIFIED MALE: He has a handgun --

UNIDENTIFIED MALE: Pretty cool.

UNIDENTIFIED MALE: A suppressor, his cell phone is in a Faraday bag. He has a checklist for today. Today he's supposed to do an intel check-in and get a survival kit.

(END VIDEOTAPE)

SCANNELL: And, John, Mangione pleaded guilty to federal stalking charges and admitted to the murder of Brian Thompson. He is expected to be sentenced in December. But the fate of the state case is still in limbo. His lawyers are trying to get that thrown out on double jeopardy grounds. A decision is likely later this year.

BERMAN: And this feels like a police drama. You know, better than the police drama, as we see on TV. A really interesting perspective listening to the officers talking as they're making that arrest, discovering that they have the guy that everyone in the country has been looking for.

Kara Scannell, terrific work. Thank you very much for that.

All right, we are standing by because moments from now the governor of New York and the state attorney general, they're holding a press conference to give an update on this new special prosecutor investigation. The governor has appointed the attorney general as a special prosecutor in the alleged gang rape at Cornell University. What are they going to say? What exactly are they now looking at? Stand by for that.

(COMMERCIAL BREAK)

[09:29:18]

BERMAN: All right, these are live pictures from here in New York City. We are standing by to hear from the governor of New York, Kathy Hochul, in the state's attorney general, Letitia James. Why Letitia James? Because the governor has now appointed her to be a special counsel, a special prosecutor investigating the allegations of a gang rape at Cornell University.

This is a press conference. They called this yesterday. Presumably we'll get some sense of the mandate that the attorney general now has. The governor says she has lost faith in the local district attorney at Cornell University. That's Tompkins County D.A. Matthew Van Houten. This is after he decided not to file charges in the case two years ago. She lost faith that he could oversee the situation fairly.

[09:30:04]

SIDNER: All right, CNN's Brynn Gingras is here with the latest.

There has been a lot of consternation about how the