The U.S. economy added 162,000 jobs in August, far exceeding the 55,000 jobs economists had expected, according to the latest government data. The unemployment rate held steady at 4.1 percent, defying predictions that it would rise to 4.2 percent.
The report also revised away a previously reported job loss. July’s numbers were revised up by 44,000, turning a reported loss of 23,000 jobs into a gain of 21,000. June’s figure was revised up by 11,000 to a gain of 31,000. Combined, June and July now show 55,000 more jobs than originally reported.
Private employers added 127,000 jobs in August, more than double the 53,000 that had been forecast. The prior month’s private-sector gain was revised up from 30,000 to 71,000.
Where the Jobs Came From
Manufacturing added 16,000 jobs, beating an estimate of 5,000, with July’s figure revised up from a gain of 5,000 to a gain of 14,000. Durable goods manufacturing added 15,000 jobs after gains of 24,000 in July and 13,000 in June.
Construction added 22,000 jobs following an 18,000 gain in July, a trend linked in part to a boom in data center building.
Leisure and hospitality added 62,000 jobs, a surprise turnaround after the sector had contracted in both July and June. Retail added a modest 1,400 jobs, while wholesale trade added 7,800. Transportation and warehousing gained 5,000 jobs, and utilities added 2,500.
Not every sector grew. The information sector lost 23,000 jobs, which some observers see as a possible sign that artificial intelligence is beginning to displace workers in that field. Finance lost 11,000 jobs.
Professional and business services added 10,000 jobs, including 6,800 in temporary help — a category economists watch closely as an early indicator of labor market direction.
Government Jobs Keep Shrinking
Federal government payrolls fell by 5,000, continuing a decline that has persisted under President Donald Trump. State government employment dropped by 10,000. At the local level, though, public education payrolls grew by 41,900 and other local government jobs rose by 8,200.
Paychecks and Hours Grew Too
Average hourly earnings rose 0.3 percent for the month, a pace generally seen as consistent with the Federal Reserve’s 2 percent inflation target. Over the past year, average hourly earnings are up 3.1 percent, higher than the 3 percent that had been expected.
The average workweek increased to 34.4 hours, up from 34.3 hours in July — an uptick that no economist surveyed by Econoday had predicted, and one that means workers likely took home bigger paychecks in August than the month before.
A Changed Labor Market
Economists note that the U.S. labor market looks different than it did just a few years ago, largely because of a shift away from immigration-driven workforce growth. Some now estimate that the
