US Economy Adds 162,000 Jobs in August as Labor Market Beats Expectations

Public schools and food services led the gains in the US job market, according to the monthly jobs report released by the US Department of Labor’s Bureau of Labor Statistics (BLS) on Friday. The United States economy added 162,000 jobs in August, while the unemployment rate remained unchanged.

The data came in well above analysts’ expectations. Economists polled by Reuters had forecast 56,000 gains, the Wall Street Journal forecast 53,000, and Bloomberg had forecast 55,000, following a loss of 23,000 in July. Local government education, or public schools, accounted for nearly 42,000 of the jobs added as the 2026–27 school year begins across much of the US, as teachers typically return to payrolls after the summer months. Food service jobs also saw large increases, with the sector adding 59,000 jobs in August compared to the prior month. Additional gains were recorded in construction, which added 22,000 jobs, and healthcare, which added 12,000.

Conversely, the information sector fell by 23,000 jobs, featuring notable layoffs at companies including Scripps TV and Zillow. The financial activities sector dropped by 12,000 jobs.

This data contrasted sharply with the ADP national employment report, which tracked private payrolls and found 38,000 jobs added. Meanwhile, 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, with total separations falling to 5.1 million.

Ahead of the US Federal Reserve’s policy meeting, CME Group’s FedWatch indicated a 60 percent chance of a 25 basis point rate increase to 3.75–4.00 percent, up from 49 percent on Thursday. US President Donald Trump urged the central bank to lower interest rates on Truth Social, while US markets trended downward with the Nasdaq down 0.2 percent, the Dow Jones Industrial Average down 0.5 percent, and the S&P 500 down 0.3 percent. Simultaneously, Statistics Canada reported that the Canadian economy lost 41,700 jobs, with the unemployment rate steady at 6.4 percent amid ongoing trade disputes.