US August jobs beat expectations

Total nonfarm payroll employment in the United States increased by 162,000 in August 2026, marking a stronger advance than the average monthly gain of 31,000 over the prior 12 months. The unemployment rate was unchanged at 4.1%, with the number of unemployed people little changed at 7.0 million. Economists had expected job growth of roughly 53,000–55,000, so the August figure exceeded consensus forecasts by a wide margin.

The Bureau of Labor Statistics release showed that the labor force participation rate edged up to 61.6%. The average workweek for all employees on private nonfarm payrolls also ticked higher, rising by 0.1 hour to 34.4 hours. These changes suggest a modest increase in both the number of people working or seeking work and the average hours worked per employee.

Job growth in August was concentrated in a few key industries. Employment in food services and drinking places increased by 59,000, making it one of the largest contributors to the overall payroll gain. Local government education added 42,000 jobs, providing another significant boost to total nonfarm employment.

By contrast, the information industry shed 23,000 jobs in August, offsetting some of the strength seen elsewhere in the economy. Other areas such as leisure and hospitality were highlighted as important sources of job gains, reinforcing the role of service-oriented sectors in current labor market growth.

Average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3%, in August to $37.75. Over the past year, average hourly earnings increased by 3.1%, which represents the slowest annual pace since the pandemic period and is below recent inflation readings mentioned in contemporaneous coverage. The combination of rising employment, slightly longer hours, and moderate wage growth provides a nuanced picture of labor income trends.

The August report also showed a notable decline in the number of people employed part time for economic reasons, which fell by 414,000 to 4.4 million. This indicates fewer workers reporting that they are part time because of slack business conditions or inability to find full-time work. Together with the uptick in participation, this points to some improvement in labor market engagement.

Payroll estimates for earlier months were revised higher. The change in total nonfarm payroll employment for June was revised up by 11,000, to an increase of 31,000 jobs. July’s change was revised up by 44,000, to a gain of 21,000 jobs.

Combined, these revisions mean that employment in June and July was 55,000 higher than previously reported. When added to the stronger-than-expected August increase, the revisions suggest that job growth over the summer was firmer than earlier data had implied. This updated picture will likely shape how policymakers and market participants assess the current strength of the labor market.