Is AI killing your chances of landing a job?
Applicants per open role have more than doubled since 2022, overwhelming recruiters. How do you get a human to look at your resume?
The U.S. economy added a surprising 162,000 jobs in August, the Labor Department estimated Sept. 4, even as economists said a “low-hire, low-fire” dynamic made it difficult for unemployed Americans to find work.
The 162,000 estimate for August far surpassed forecasters’ expectations and marked a rebound after U.S. employers added a now-revised 21,000 jobs in July. The department previously estimated U.S. employers shed 23,000 jobs in July. Payroll gains for June were also revised higher, reflecting a stronger summer job market than previously thought.
The unemployment rate stayed put at 4.1% in August after falling in June and July when hundreds of thousands of Americans stopped looking for work. The labor force participation rate ticked up to 61.6% in August after falling to 61.4% the month before.
“There are always areas of concern in the labor market. For example, among recent graduates,” Federal Reserve Chair Kevin Warsh said Aug. 28. “In general, though, people who want to work, by and large, are holding or finding jobs. They may well be concerned about future labor disruptions, but as of now, I believe the labor markets are broadly consistent with full employment.”
Average hourly earnings for employees on private, nonfarm payrolls rose by 10 cents to $37.75 in August, the department said. They increased 3.1% over the year. The department’s next inflation report due out Sept. 11 will reveal whether paychecks kept up with inflation in August. They did not in July.
Fed officials will review the new employment numbers for August and the upcoming inflation report as they prepare for their next interest rate decision on Sept. 16. Several policymakers have signaled they may support a rate hike if the report shows inflation is not on a path back to the central bank’s 2% annual target.
See the jobs data
U.S. employers added 162,000 jobs in August, the highest monthly total since March this year.
The unemployment rate remained unchanged at 4.1%.
Which industries are hiring?
A boost in food services and drinking places employment drove the payroll gains. The sector added 59,000 jobs in August.
Not far behind was local government education, which added 42,000. The construction sector added 22,000 roles, and the manufacturing industry gained 16,000 jobs. The health care sector added 13,000, a number that still represents growth but is lower than its average monthly gain of 32,000 over the past year.
Employment in the information industry fell by 23,000 in August. It was little changed in other sectors including social assistance, financial activities, and professional and business services, the department said.
ADP’s National Employment Report released Sept. 2 offers another look at the U.S. labor market. It found private employers added a much lower 38,000 jobs in August.
According to the ADP report, the education and health services sector added 45,000 roles, leisure and hospitality gained 16,000, and construction added 12,000 in August. It found employment in the financial activities sector increased, but that employment declined in professional and business services, trade, transportation, and utilities, and the information sector.
(This is a developing story and will be updated to add new information.)
Reach Rachel Barber at rbarber@usatoday.com, follow her on X @rachelbarber_, and subscribe to her newsletter “Making More of Your Money” here