U.S. adds 162,000 jobs in August, unemployment 4.1%

By Andrew Rice
The Center Square

The U.S. economy added 162,000 jobs in August, a stark improvement from previous months, according to data from the U.S. Bureau of Labor Statistics. 

The unemployment rate remained at 4.1% during the month. The food service industry and local government education drove job gains in August as schools across the country returned from summer break. 

August represented a stark difference compared to the previous year. The average job gain over the last 12 months was 31,000. The food service and drinking place industry added 59,000 jobs in August, above the industry's average monthly gain of 12,000 jobs. 

The local government education sector added 42,000 jobs as schools started again. This increase offset a decrease in the previous month but overall showed little change since January 2025. 

Heather Long, chief economist at Navy Federal, was surprised by the rebound in August jobs. She pointed out that the BLS revised its statistics upward in June and July, adding more than 55,000 jobs across both months. 

"Wow. A huge August jobs report," Long said. "There were big rebounds in hiring in hospitality and education."

The BLS revised July numbers up by 44,000 jobs from a loss of 23,000 jobs to a gain of 21,000. 

The healthcare industry, a reliable driver of employment figures, added 13,000 jobs in August. On average, the healthcare industry adds 32,000 jobs per month, according to the BLS. 

The computing infrastructure, data processing and web hosting industry lost 8,000 jobs in August. Publishing industries lost 7,000 jobs and broadcasting lost 5,000. 

Long pointed out that wage growth was only 3.1%, still well below inflation at 3.5% as global energy markets still brace for tension between the U.S. and Iran. 

The BLS will release its August inflation report Wednesday to give a clearer economic picture as conflict between the U.S. and Iran continues to shock global energy markets and drive up gas prices.