August 2026 jobs report shows 162,000 payroll gain and 4.1% unemployment
U.S. hiring rebounded in August, while upward revisions and steady unemployment added to signs of a firmer labor market.
By Maya Okafor · Markets Writer
· 2 min read
The August 2026 jobs report showed U.S. employers added 162,000 nonfarm jobs, far outpacing economists’ 53,000-job forecast in the Dow Jones survey cited by CNBC. The unemployment rate held at 4.1%, according to the Bureau of Labor Statistics. For investors, the stronger hiring number added to the case that the Federal Reserve may keep its attention on inflation before deciding where interest rates go next.
The August gain was well above the 31,000 average monthly increase over the preceding 12 months, BLS said. It also followed upward revisions to the two prior reports: June payroll growth was revised from 20,000 to 31,000, while July shifted from a reported loss of 23,000 jobs to a gain of 21,000. Together, those revisions added 55,000 jobs to the previously reported totals.
Why can payrolls rise while unemployment stays at 4.1%?
The headline payroll count and unemployment rate come from different monthly BLS surveys. The establishment survey of employers measures nonfarm payrolls, hours and earnings. The household survey measures whether people are working or seeking work, which is used to calculate unemployment.
In August, the labor force, meaning people working or actively looking for work, rose by 683,000. The participation rate increased 0.2 percentage point to 61.6%. Household employment rose by 569,000, while the number of unemployed people was little changed at 7.0 million, BLS said. The employment-population ratio, which measures the share of the civilian population that is employed, was 59.1%.
Where the August job gains came from
Hiring was concentrated in several industries, with food services and drinking places leading the way. Local government education also posted a large increase that BLS said largely offset a decrease in the previous month.
- Food services and drinking places: up 59,000 jobs
- Local government education: up 42,000 jobs
- Manufacturing: up 16,000 jobs
- Health care: up 13,000 jobs
- Information: down 23,000 jobs
Construction employment changed little, rising 22,000, according to BLS. Health care continued to add positions, though its August gain was below its 32,000 average monthly increase over the prior year.
Pay also increased. Average hourly earnings for private nonfarm employees rose 10 cents, or 0.3%, to $37.75 in August and were 3.1% higher than a year earlier. The average private-sector workweek increased by 0.1 hour to 34.4 hours.
Other measures showed some improvement in job quality. The number of people working part time for economic reasons fell by 414,000 to 4.4 million. Long-term unemployment, defined by BLS as joblessness lasting 27 weeks or more, was little changed at 1.9 million and accounted for 27% of unemployed people.
Markets increased their perceived odds of a September Fed rate increase after the report, Reuters reported, while upcoming inflation data remained a key input for policymakers. That reaction reflects market expectations, not a confirmed Fed decision.
This story draws on original reporting from CNBC.
