US employers added 162,000 jobs in August, a result that beat consensus forecasts after two weak months for payrolls, the jobs report released on 4 September 2026 showed. The figures return inflation to the centre of the debate over Federal Reserve interest-rate decisions, while wage growth remained subdued.
Economists surveyed by FactSet expected 65,000 jobs to be added during August. Econoday’s consensus forecast was 55,000. The reported increase of 162,000 was over five times the 31,000 monthly average recorded across the past 12 months.
Updated estimates for June and July added a combined 55,000 jobs to the earlier figures. July is now estimated to have produced 21,000 jobs, instead of the initial estimate of a loss of 23,000.
The unemployment rate stood at 4.1% in August, the same as in the previous month. Labour force participation rose by 0.2 percentage points to 61.6%.
Wage growth in August was 3.1%, its lowest level since May 2021. Wage growth continues to lag inflation, presenting a weaker reading on pay than the employment figures did on hiring.
Food services and bars gained 59,000 jobs during August. Local government education added 42,000 jobs and manufacturing added 16,000. Wholesale, food services and local government education recorded strong growth, while leisure and hospitality, information, and financial services lost jobs.
The August result follows disappointing payroll readings in June and July. Its size, combined with the revisions to previous data, suggests the labour market has held up better than many economists had expected.
The report gives no reason for the increase in August hiring and does not establish whether that pace will persist. It also offers no answer on the Federal Reserve’s intended response to the stronger employment data as wage growth remains below inflation.
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