The U.S. economy went on a hiring spree in August. Here are five things we learned from U.S. economic data released during the week ending September 4.
Job creation accelerated in August. Nonfarm payrolls expanded by a seasonally adjusted 162,000, well above June and July gains of 31,000 and 21,000, respectively. The Bureau of Labor Statistics also reported a combined upward revision of 55,000 for the two previous months. Private sector payrolls grew by 127,000 in August, with the largest gains in leisure/hospitality (+62,000), health care/social assistance (+28,400), and construction (+22,000). Government employment increased by 35,000. Average weekly wages have risen 3.7 percent over the past year to $1,298.60.
Based on data from a separate household survey, the unemployment rate held steady at 4.1 percent (August 2025: 4.3 percent). 683,000 people entered the labor force during the month, leading to a 0.2 percentage point gain in the labor force participation rate to 61.6 percent (August 2025: 62.3 percent). The median duration of unemployment rose by 0.9 weeks to 11.4 weeks (August 2025: 9.9 weeks), while the count of part-time workers for “economic reasons” fell by 414,000 to 4.390 million (August 2025: 4.755 million). The broadest measure of labor underutilization, the U-6 series, declined by 0.2 percentage points to 7.7 percent (August 2025: 8.1 percent).
Hiring slowed as more jobs went unfilled in July. The Bureau of Labor Statistics reports that there were 7.271 million open jobs at the end of July, up 89,000 for the month and 2.6 percent from a year earlier. Private sector employers sought to fill 6.461 million jobs, including at least a million openings in health care/social assistance (1.438 million), trade/transportation/utilities (1.271 million), and professional/business services (1.138 million). Hiring slumped by 282,000 to 5.034 million (-3.3 percent versus July 2025). Private sector employers hired 4.758 million workers. 5.072 million people separated from their jobs, down 265,000 for the month and 1.9 percent from a year earlier. This included 3.056 million who had quit their jobs (-157,000) and 1.666 million who had suffered a layoff (-119,000 versus June 2026).
The manufacturing sector expanded in August. The Manufacturing PMI dropped by a full point to 54.6. The Institute for Supply Management index has remained above the 50.0 expansion/contraction threshold for eight straight months. The index components for new orders (53.7), production (58.3), employment (51), and inventories (50.6) all declined. Fifteen tracked manufacturing industries grew in August, led by primary metals, electrical equipment/appliances, and textiles. The press release noted that 58 percent of survey respondents expressed concerns about pricing volatility, the conflict in the Middle East, increasing lead times, and tariffs.
…As did the service sector. The ISM’s Services PMI rose 1.3 points to 554.3. This marked the 26th consecutive month the Services PMI has been above 50.0. Among index components, business activity/production (61.7), new orders (60.9), employment (47.4), and inventories (56.7) all improved during the month. Twelve service sectors reported growth in August, led by mining, real estate, and accommodation/food services. Five others contracted, including agriculture/fishing, construction, and management of companies/support services. Survey commenters noted that “tariffs and the Middle East conflict” were affecting supply chains.
The trade deficit swelled in July. Exports slowed 2.1 percent to a seasonally adjusted $310.7 billion, while imports rose 2.8 percent to $399.3 billion. The resulting trade deficit of -$88.6 billion marked a 24.4 percent jump in the Census Bureau and Bureau of Economic Analysis measure. Despite the monthly increase, the year-to-date deficit of -$447.2 billion was 29.6 percent smaller than a year earlier. The goods deficit expanded by $17.6 billion to -$119.6 billion, while the services surplus grew $0.2 billion to +$31.0 billion. The former reflected a decline in oil exports and an increase in capital-goods imports (including computers). The U.S. recorded its largest goods deficits with Mexico, Vietnam, and Taiwan.
Other U.S. economic data released over the past week:
- Jobless Claims (Week ending August 29, 2026, First-Time Claims, seasonally adjusted): 206,000 (+2,000 vs. the previous week, -30,000 vs. the same week a year earlier). 4-week moving average: 207,250 (-10.1% vs. the same week a year earlier).
- Factory Orders (July 2026, New Orders for Manufactured Goods, seasonally adjusted): $663.6 billion (+0.9% vs. June 2026). 2026 Year-to-Date: $4.505 trillion (+6.5% vs. comparable 2025 months).
- Construction Spending (July 2026, Value of Construction in Place, seasonally adjusted annualized rate): $2.158 trillion (-0.5% vs. June 2026; -3.8% vs. July 2025).
- Productivity (2026Q2-revised, Nonfarm Business Labor Productivity, seasonally adjusted annualized rate): +1.4% vs. 2026Q1; +2.2% vs. 2025Q2.
- Vehicle Sales (August 2026, Auto and Light Truck Sales, seasonally adjusted annualized rate): 16.764 million (+2.7% vs. July 2026; +1.6% vs. August 2025).
- Agricultural Prices (July 2026, Prices Received by Farmers, not seasonally adjusted): -4.1% vs. June 2026; -2.6% vs. July 2025.
- Beige Book
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What We Learned About the U.S. Economy Last Week 