September 4, 2026
According to the U.S. Bureau of Labor Statistics, total nonfarm payroll employment increased by 162,000 in August 2026, while the unemployment rate remained unchanged at 4.1%. Employment gains were concentrated in food services and drinking places, local government education, manufacturing, and health care, while the information sector recorded notable job losses. The August payroll increase was significantly stronger than the average monthly gain of 31,000 jobs recorded over the prior twelve months.
The BLS also revised prior months’ employment figures upward. June payroll employment was revised from +20,000 to +31,000, while July was revised from -23,000 to +21,000. Combined, employment for June and July was revised 55,000 jobs higher than previously reported, reflecting additional reports received from businesses and government agencies and updated seasonal adjustments.
Household Survey Data
In August, the unemployment rate remained at 4.1%, with approximately 7.0 million individuals unemployed, showing little change from the previous month and over the year. Among major demographic groups, the unemployment rate for Asians declined to 3.2%, while the rate for teenagers increased to 14.1%, largely offsetting a decline in the prior month. Unemployment rates for adult men (4.0%), adult women (3.5%), Whites (3.7%), Blacks (6.0%), and Hispanics (4.8%) were little changed during the month.
The number of individuals unemployed for 27 weeks or more remained relatively stable at 1.9 million. Long-term unemployed persons accounted for 27.0% of all unemployed individuals in August, underscoring the continued concentration of unemployment among workers experiencing prolonged joblessness.
Broader labour force indicators showed mixed results. The labour force participation rate edged up by 0.2 percentage point to 61.6%, although it remains 0.5 percentage point below its January level. The employment-population ratio held steady at 59.1%, showing little change both over the month and since the start of the year. Meanwhile, the number of people employed part time for economic reasons declined by 414,000 to 4.4 million, indicating an improvement in labour utilization. The number of individuals not in the labour force who wanted a job remained largely unchanged at 5.7 million, while the number of discouraged workers held steady at 441,000.
Establishment Survey Data
Total nonfarm payroll employment increased by 162,000 in August, substantially exceeding the average monthly gain of 31,000 over the preceding twelve months. Food services and drinking places led job growth, adding 59,000 jobs, well above the industry’s average monthly gain of 12,000 over the prior year. Local government education added 42,000 jobs, largely reversing a decline recorded in the previous month.
Employment in manufacturing continued its upward trajectory, increasing by 16,000 jobs during August and bringing cumulative gains since December 2025 to 58,000 jobs. Growth was concentrated in machinery manufacturing (+6,000) and fabricated metal product manufacturing (+6,000). The health care sector added 13,000 jobs, although growth remained below the average monthly increase of 32,000 recorded over the past year. Gains were concentrated in home health care services (+11,000) and hospitals (+8,000).
The information sector experienced the largest employment decline, losing 23,000 jobs during the month. Losses were concentrated among computing infrastructure providers, data processing, web hosting, and related services (-8,000), publishing industries (-7,000), and broadcasting and content providers (-5,000). Construction employment increased modestly by 22,000, with nonresidential specialty trade contractors accounting for 8,000 of those gains. Employment showed little change across several other major industries, including mining, wholesale trade, retail trade, transportation and warehousing, financial activities, professional and business services, social assistance, and other services.
Wage growth remained moderate. Average hourly earnings for all private nonfarm employees increased by 10 cents (0.3%) to $37.75 in August and were 3.1% higher than a year earlier. Production and nonsupervisory employees recorded an 11-cent increase, bringing average hourly earnings to $32.53. The average workweek for all private-sector employees edged up by 0.1 hour to 34.4 hours, while the manufacturing workweek increased slightly to 40.5 hours. Manufacturing overtime was unchanged at 3.1 hours, and the average workweek for production and nonsupervisory employees remained at 33.8 hours.
Source: U.S. Bureau of Labor Statistics : U.S. Bureau of Labor Statistics
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
