The United States economy added 162,000 jobs in August, significantly exceeding economists’ forecasts, while the unemployment rate remained unchanged, according to the monthly jobs report released by the US Department of Labor’s Bureau of Labor Statistics (BLS) on Friday.
The stronger-than-expected report comes ahead of the US Federal Reserve’s policy meeting later this month, where officials will vote on interest rates.
Economists polled by Reuters forecast 56,000 job gains, while the Wall Street Journal projected 53,000 and Bloomberg forecast 55,000. The August increase follows a loss of 23,000 jobs in July.
Local government education, including public schools, accounted for nearly 42,000 jobs as the 2026–27 school year begins across much of the country. Teachers typically fall off the payroll during the summer months when schools are not in session.
Food services recorded another major increase, adding 59,000 jobs in August compared with the previous month. Construction added 22,000 jobs, while healthcare added 12,000.
Not all sectors recorded gains. The information industry, spanning data processing, web hosting, publishing, broadcasting, and telecommunications, lost 23,000 jobs. Notable layoffs occurred at companies including Scripps TV and Zillow.
Financial activities, which include insurance, commercial banking, and real estate, saw a 12,000-job decline.
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The figures differ sharply from the ADP national employment report, which tracks private payrolls and recorded 38,000 jobs added across the US economy.
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) report showed job openings at 7.3 million in July, up from 7.2 million in June. Total separations fell to 5.1 million in July from 5.3 million in June.
CME Group’s FedWatch showed a 60% chance of a 25 basis point rate increase to 3.75%–4.00%, up from 49% on Thursday.
US President Donald Trump urged the Federal Reserve to cut rates, saying: “Lower the interest rates because the USA is a much stronger credit than it was a short time ago!”
US markets moved lower despite the jobs report. The Nasdaq fell 0.2%, the Dow Jones Industrial Average dropped 0.5%, and the S&P 500 declined 0.3% following Trump’s comments. Canada, on the other hand, lost 41,700 jobs, with unemployment at 6.4%.