The US economy added 162,000 jobs in August, far above the market’s expectations for 53,000. The unemployment rate was 4.1 percent, as expected. The US added an average of 80,000 jobs per month in 2026, compared to 10,000 jobs per month during 2025.
The August data showed a vast improvement over June and July when job gains were 31,000 and 21,000, respectively. This report helped quell worries about the labor market having started to cool. Overall, the job market is at a standstill; companies are reluctant to hire, as well as fire, employees.
This report is good news for the Fed, as officials have been making it clear that inflation data will be driving the decision on any changes in interest rates at this month’s meeting on September 15-16. The Labor Department will release August inflation data on Friday, but it’s increasingly likely a rate increase is forthcoming.