US Added 162,000 Jobs in August, Triple the Forecast

The US economy added 162,000 jobs in August, the Bureau of Labor Statistics reported on September 4, nearly tripling the 55,000 that economists had expected and confirming that the July dip was a soft patch rather than a turning point. The unemployment rate held at 4.1%, and the labor force participation rate rebounded to 61.6% from its July low.

July's report, which had originally shown a loss of 55,000 jobs, was revised up by 44,000 to a net gain of 21,000. The combined July-August print now sits at 183,000.

What sectors carried the gain?

Leisure and hospitality once again led job growth, while construction added 22,000 and manufacturing 16,000. Financial services and the information sector posted declines. White House Senior Deputy Press Secretary Kush Desai framed the factory and building numbers as evidence of "President Trump's reindustrialization agenda" paying off, though manufacturing employment remains below its January 2025 level.

The labor market continues to function as a healthcare engine. ADP's private payrolls release showed 45,000 education and health services jobs added in August, and ADP chief economist Nela Richardson told Yahoo Finance: "When you look underneath the hood at which sectors are driving employment, it is still healthcare, healthcare, healthcare, still driven by the demographics of the population change." Nurse practitioner is the fastest-growing occupation in 42 states, with employment projected to rise 41% from 2025 to 2035 and a 2025 median pay of $132,300, per Visual Capitalist.

What does the report mean for pay?

Average hourly earnings rose 0.3% on the month and 3.1% year over year. Job switchers continued to outgain stayers, with ADP reporting a 4.7% year-over-year base-wage increase for switchers versus 3% for those who remained in role. Richardson called the gap a sign there is "still some opportunity to boost wages by changing jobs, even in this low fire, low hire job market."

Why is the Fed watching this so closely?

The August print lands in the Fed's lap just twelve days before its September 16-17 meeting. Chairman Kevin Warsh used his Jackson Hole speech to argue the central bank should focus on prices, not jobs: "The Fed's predominant focus right now should be on prices." Inflation stood at 3.4% in July and has run above the 2% target for more than five years.

RSM chief economist Joe Brusuelas read the data as a green light for tightening: "Takeaway: looks like the Fed is likely to hike rates at its September meeting unless the August CPI surprises to the downside." September 11 CPI data, due one week after the payrolls release, will set the table for the decision.

President Trump, writing on Truth Social, dismissed that calculus: "Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!"

Is the layoff picture as calm as the hiring picture?

Yes — and increasingly so. Challenger, Gray & Christmas recorded 53,000 announced layoff plans in August, the slowest August for layoffs since 2022. Through the first eight months of 2026, total job-cut announcements are down 41% versus 2025. Apollo Global chief economist Torsten Sløk said the data rebuts one of the more common 2026 anxieties: "There is still no evidence that AI is replacing workers."

Hiring is steadier too. The Job Openings and Labor Turnover Survey showed 7.3 million openings in July, with 5.1 million workers finding new jobs that month at a hiring rate of 3.2%. Initial jobless claims rose 2,000 to 206,000 in the week ending August 29, with the four-week average at 207,250.

For job seekers, the takeaway: the market is still tilted toward candidates in healthcare, skilled trades tied to data-center construction, and roles where employers struggle to fill shifts. The September 11 CPI release and the Fed's September 17 rate decision will determine whether this hiring pace continues into the fall or begins to cool under tighter policy.