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U.S. adds 162,000 jobs in August as unemployment holds at 4.1%

The payroll increase was the strongest in months, but hiring remained concentrated and the labor-force participation rate stayed at 61.6%.

By Wrivid News Desk
The Bureau of Labor Statistics building in Washington, D.C.
The Bureau of Labor Statistics building in Washington, D.C.File photo: Ray Flores / U.S. Department of Labor via DVIDS · Public domain

Executive summary

  • The headline: U.S. nonfarm payrolls increased by 162,000 in August, substantially above the recent pace of hiring and economists’ forecasts.[1][2][3]
  • The jobless rate: The unemployment rate held at 4.1%, with 7 million people unemployed, while labor-force participation was unchanged at 61.6%.[1][2][3]
  • The revisions: Revisions added a combined 55,000 jobs to June and July, including an upward revision that turned July’s initially reported loss into a gain of 21,000.[1][2][3]
  • The mix: Restaurants, local-government education and manufacturing led gains, while information-sector employment declined by 23,000.[1][2]

U.S. employers added 162,000 jobs in August, the Labor Department said Friday, delivering a stronger-than-expected increase after months of weak hiring. The unemployment rate remained at 4.1%, and the number of unemployed people was little changed at 7 million.[1][2][3]

The payroll gain was far above the 31,000 monthly average over the prior year. Economists surveyed by Reuters had expected an increase of 56,000, while a FactSet survey cited by the Associated Press put the consensus at 65,000, making the report a clear upside surprise even though the broader labor market remains cooler than in recent years.[1][2][3]

Earlier estimates were also revised higher. June payroll growth was raised by 11,000 to 18,000, and July was revised up by 44,000 to a gain of 21,000 instead of the previously reported loss of 23,000. Together, the revisions added 55,000 jobs to the prior two months.[1][2][3]

Hiring was uneven across industries. Food services and drinking places added 59,000 jobs, local-government education gained 42,000, manufacturing added 16,000 and health care gained 13,000. Information employment fell by 23,000, and several other major industries showed little change.[1][2]

The labor-force participation rate stayed at 61.6%, indicating that the stronger payroll figure did not come with a broader rise in the share of Americans working or looking for work. The report gives policymakers a firmer reading on labor demand, but one month of data does not erase the slower hiring trend that preceded it.[1][2][3]