US non-farm payolls surprise to the upside in August

4th Sep 2026 12:32

(Sharecast News) - US non-farm payrolls came in hotter than expected in August, according to the Bureau of Labor Statistics, rising by 162,000 against economists' expectations for a 53,000 increase.

Upward revisions to June and July also added a further 55,000 jobs to prior estimates, reinforcing the sense that hiring momentum has been firmer than previously reported.

The household survey showed little movement across most major demographic groups, with jobless rates for adult men, adult women, White, Black and Hispanic workers broadly unchanged. Asian unemployment dipped to 3.2%, while the teenage rate edged up to 14.1%, reversing the prior month's decline.

The unemployment rate held at 4.1%, signalling a labour market that remains resilient even as broader economic indicators have softened in recent months.

Long‑term unemployment was steady at 1.9m, accounting for 27% of all unemployed people, and the labour force participation rate ticked up to 61.6%, though it remained half a percentage point lower than at the start of the year.

One area likely to catch investors' attention was the sharp drop in the number of people employed part‑time for economic reasons, down 414,000 to 4.4m, suggesting an improvement in labour utilisation.

From the establishment survey, hiring was concentrated in a handful of sectors, with food services and drinking places adding 59,000 jobs, far above the recent trend, while local government education increased staffing by 42,000. Manufacturing continued its gradual recovery, adding 16,000 roles, with machinery and fabricated metals each contributing 6,000. The information sector was the main weak spot, shedding 23,000 jobs amid declines across computing infrastructure, publishing and broadcasting.

Wage growth remained steady, with average hourly earnings rising 0.3% on the month and 3.1% over the year, while the average workweek edged up to 34.4 hours.

For markets, the stronger‑than‑expected payrolls figure may complicate expectations for near‑term rate cuts, particularly after recent commentary from Federal Reserve officials emphasising caution.

Reporting by Iain Gilbert at Sharecast.com