U.S. Employers Add 162,000 Jobs in August as Unemployment Holds at 4.1%

The August increase was considerably stronger than the average monthly employment gain recorded during the previous 12 months. The latest figures also included upward revisions to employment growth reported for earlier months, providing a somewhat stronger picture of recent hiring activity than previously estimated.

July's employment figure, which had initially been reported as a decline of 23,000 jobs, was revised to a gain of 21,000. June's increase was also revised upward by 11,000 jobs, from 20,000 to 31,000. Together, the revisions increased previously reported employment for those two months by 55,000 jobs.

Service Industries Lead Job Growth

Several industries contributed to the employment increase in August.

Food services and drinking places added 59,000 jobs during the month. The increase was significantly higher than the industry's average monthly gain over the previous year, indicating stronger hiring activity across restaurants and drinking establishments.

Local government education added 42,000 jobs, largely reversing a decline recorded in July. Government employment therefore represented another important source of job creation during the month.

Manufacturing also recorded an increase, adding 16,000 jobs. Gains were reported in machinery manufacturing and fabricated metal products. Manufacturing employment has increased by 58,000 jobs since reaching a recent low in December 2025.

Health care employment increased by 13,000 jobs in August. Although the gain was smaller than the industry's average monthly increase during the previous year, hospitals and home health care services continued to contribute to overall employment growth.

At the same time, some industries experienced declines. Information-sector employment fell by 23,000 jobs, with reductions reported across several areas, including computing infrastructure providers, data processing, web hosting, publishing and broadcasting.

Employment in several other major sectors changed little during the month, including retail trade, transportation and warehousing, financial activities, professional and business services, and oil and gas extraction.

Wage Growth Continues

The employment report also showed continued growth in average hourly earnings.

Average hourly earnings for private-sector employees increased by 10 cents, or 0.3 percent, in August, reaching $37.75. Over the previous 12 months, average hourly earnings increased by 3.1 percent.

The average private-sector workweek also edged higher, increasing by 0.1 hour to 34.4 hours.

Wage growth remains an important part of the broader economic picture because it affects household income and consumer spending while also providing an indication of how employers are competing for workers.

The labor force participation rate increased slightly to 61.6 percent in August. Despite the monthly increase, the rate remained below its January level.

The employment-population ratio was 59.1 percent and changed little during the month.

Another notable development was a decline in the number of people working part time for economic reasons. That number fell by 414,000 to 4.4 million in August.

A Mixed but Resilient Labor Market

The August figures point to a labor market that remains active, although conditions vary considerably from one industry to another.

The 162,000 increase in payroll employment represents a significant improvement compared with the recent average. At the same time, the unchanged unemployment rate suggests that the overall balance between workers and available jobs remained relatively stable.

The combination of stronger hiring, continued wage growth and a steady unemployment rate provides several useful indicators for understanding the U.S. economy. Rather than showing a uniform trend across every industry, the report highlights an economy in which some sectors continue to expand while others face weaker employment conditions.

The figures will also be closely watched by economic policymakers as they evaluate the health of the labor market alongside inflation, consumer activity and other economic indicators.

For American workers, the most important takeaway is that employment opportunities continued to expand in August, with particularly strong gains in food services, local government education and manufacturing. However, the decline in information-sector employment demonstrates that hiring conditions remain uneven.

For businesses, the figures provide evidence that labor demand remains present in several important parts of the economy. For households, continued wage growth offers another indicator of income conditions heading into the final months of the year.

The next employment report will provide additional information about whether August's stronger hiring represents a sustained improvement or a temporary increase. Until then, the latest figures show that the U.S. labor market continues to demonstrate resilience while maintaining a mixed performance across different industries.