August Jobs Report Beats Forecasts With 162,000 New Jobs as Unemployment Holds at 4.1%

Employers added 162,000 jobs in August, far more than economists had expected, according to the Bureau of Labor Statistics. The unemployment rate was unchanged at 4.1%, with roughly 7.0 million people out of work. The gain was well above the prior 12-month average of about 31,000 jobs a month and offered a welcome contrast to the sluggish hiring of June and July.

Food services and drinking places added 59,000 jobs, the largest gain of any sector, followed by a 42,000-job increase in local government education. Construction added 22,000 jobs and manufacturing added 16,000, extending a recovery that has put factory employment 58,000 higher than its low in December 2025. Health care, long the engine of job growth, added a more modest 13,000, well below its 12-month average of about 32,000. The information sector lost 23,000 jobs.

Revisions to earlier months were mildly positive: June was revised up by 11,000 to a gain of 31,000, and July was revised up by 44,000 to 21,000, leaving the two months a combined 55,000 jobs higher than first reported. Average hourly earnings rose 10 cents, or 0.3%, to $37.75, up 3.1% from a year earlier, and the average workweek edged up to 34.4 hours.

The report landed less than two weeks before the Federal Reserve's September meeting and strengthened the case of officials who argue the labor market is stable enough to tolerate higher interest rates. Analysts noted that August looked like a rebound after weak hiring in June and July, and that monthly figures are routinely revised.

Reporting based on the Bureau of Labor Statistics' Employment Situation release for August 2026.