US economy adds 162,000 jobs in August, surpassing forecasts

The US labor market had a story to tell in August, and it was better than almost anyone expected. The Bureau of Labor Statistics reported on September 4, 2026, that nonfarm payrolls grew by 162,000 jobs last month, more than three times the consensus forecast of 53,000. Economists were off by 109,000 jobs. What the numbers actually say The August rebound is especially notable given what came before it. July saw a revised loss of 23,000 jobs, a figure that itself was adjusted downward from earlier estimates. The unemployment rate held steady at 4.1%. Labor force participation ticked up slightly to 61.6%. Wages also moved in the right direction. Average hourly earnings rose 0.3% month-over-month to $37.75, translating to a year-over-year gain of 3.1%. The sector breakdown tells its own story. Food services and drinking places led all categories with 59,000 new jobs. Local government education added 42,000 jobs. Manufacturing contributed 16,000, and healthcare added 13,000. The one soft spot was the information sector, which posted a net decline. The ADP problem ADP’s private sector employment report for August came in at just 38,000 jobs, well below expectations and dramatically lowe...