August Jobs Report Shows 162k Gain, Unemployment Steady at 4.1% as Wage Growth Cools
MarketsFN Data Team
U.S. employers added 162,000 jobs in August 2026, outpacing the 3-month average of 71k but showing moderation from recent highs, as wage growth slowed to 3.3% YoY and unemployment held at 4.1%.
Nonfarm payrolls rose by 162,000 in August 2026, with private employers adding 127,000 jobs and government payrolls contributing 35,000. The gain exceeded the sluggish 3-month average (71k) and 12-month trend (50k), though well below the 52-week high of 214k. The government sector shed 5,000 jobs, while healthcare and construction led private hiring.
Sector Breakdown — Month-on-Month Change
| Government | ▼ 5k |
The unemployment rate held steady at 4.1% in August 2026, while the underemployment rate (U-6) dipped 20 basis points to 7.7%, narrowing the U6-U3 gap to 3.6pp—suggesting modest slack remains. Labour force participation edged up 0.2pp to 61.6%, signalling cautious worker re-entry amid cooling demand.
Average hourly earnings rose 0.3% MoM and 3.3% YoY in August 2026, marking a deceleration from prior months. The cooling wage trajectory aligns with easing labour market tightness and could reassure Fed officials watching for inflationary wage spirals.
Markets will scrutinize September's CPI data for confirmation of disinflation trends, while the Fed's November FOMC meeting looms. Watch for sustained government job cuts and whether leisure/hiring rebounds after summer softness.
Key Statistics at a Glance
| Data month | August 2026 |
| Released | October 02, 2026 |
| Total nonfarm payrolls | ▲ 162k |
| Private payrolls | +127k |
| Government payrolls | +35k |
| 3-month avg | +71k |
| 12-month avg | +50k |
| 52-week range | -156k → +214k |
| Unemployment (U-3) | ▼ 4.1% (+0.0pp MoM) |
| Underemployment (U-6) | 7.7% (-0.2pp MoM) |
| U6–U3 gap | 3.6pp |
| LFPR (overall) | 61.6% (+0.2pp MoM) |
| LFPR (prime age) | 83.4% |
| Avg hourly earnings | YoY +3.3% · MoM +0.3% |
| Next jobs report | November 06, 2026 |
