U.S. Adds 162,000 Jobs in August as Labor Market Shows Stronger Momentum

The August increase was significantly larger than the average monthly gain recorded during the previous year. Employment figures for June and July were also revised upward, resulting in a stronger picture of job growth during the summer than earlier estimates had indicated.

According to the latest federal employment data, the number of unemployed people remained relatively stable at approximately 7 million. The labor-force participation rate increased slightly to 61.6%, while the employment-population ratio reached 59.1%.

Together, the figures indicate that the U.S. labor market continued to expand while unemployment remained relatively steady.

Food Service and Education Drive Employment Growth

Several industries contributed to the increase in employment during August.

Food services and drinking places recorded one of the largest gains, adding approximately 59,000 jobs. The sector's increase was notably stronger than its average monthly growth over the preceding year, reflecting continued demand for restaurants and other food-service businesses.

Local government education employment also increased, adding approximately 42,000 positions. The rise followed a decline in the previous month and reflects, in part, the seasonal changes that typically affect education employment as schools begin a new academic year.

Employment among nonresidential specialty trade contractors also continued to increase, with approximately 8,000 additional positions during the month.

Several other major industries experienced comparatively little change. These included mining and oil and gas extraction, wholesale trade, retail trade, transportation and warehousing, financial activities, professional and business services, and social assistance.

The information sector was among the areas that recorded an employment decline.

The uneven performance across industries is significant because it shows that overall job growth does not necessarily translate into identical conditions for every sector. Some industries are continuing to expand, while others are experiencing slower growth or reductions in employment.

Wages Continue to Increase

The latest employment figures also showed continued wage growth.

Average hourly earnings for private-sector employees increased by 10 cents in August, reaching approximately $37.75 per hour. Over the previous 12 months, average hourly earnings increased by 3.1%.

The average workweek for private nonfarm employees increased slightly to 34.4 hours.

Wage growth remains an important part of the employment picture because the number of jobs alone does not show how workers' earnings are changing. The combination of employment gains and rising average wages provides a broader indication of labor-market conditions.

For employees, higher earnings can affect household purchasing power and spending. For businesses, wage trends remain an important consideration when planning staffing levels and operating costs.

What the Numbers Mean for Texas

The national employment report is particularly relevant to Texas because the state's economy is closely connected to broader U.S. economic activity.

Texas has a large and diverse labor market spanning energy, manufacturing, construction, technology, health care, professional services, retail, hospitality and other industries. Changes in national employment can therefore influence demand for workers and services throughout the state.

Recent economic projections from the Federal Reserve Bank of Dallas have pointed to continued employment growth in Texas during 2026, although growth has varied considerably among industries.

Texas employment conditions have recently shown mixed results. Some sectors, including professional and business services, education and health services, and leisure and hospitality, have recorded gains, while other areas have experienced weaker activity.

The national August figures provide encouraging evidence that employment activity strengthened during the month, but they do not by themselves determine how Texas performed.

More detailed state-level employment figures will provide a clearer picture of conditions in Texas, including changes among individual industries and metropolitan areas.

Key Takeaways for Workers and Businesses

The latest employment report offers several important takeaways.

First, U.S. job growth accelerated in August compared with the weaker employment increases reported earlier in the summer. The upward revisions to previous months also indicate that the labor market was performing somewhat better than earlier estimates suggested.

Second, unemployment remained stable at 4.1%. This suggests that the increase in employment did not coincide with a significant deterioration in overall unemployment conditions.

Third, wage growth continued. Average hourly earnings increased during August and remained higher than they were a year earlier.

Finally, employment growth remains uneven across industries. Food services, education and specialty construction recorded gains, while information employment declined and several other sectors changed little.

For Texas, the next step will be to examine the state's own employment figures alongside the national results. Those numbers will help determine how closely Texas followed the broader U.S. trend.

For now, the August employment report presents a picture of a labor market that regained momentum while maintaining relatively stable unemployment and continued wage growth. As businesses and households move toward the final months of 2026, employment trends will remain an important indicator of economic conditions across the country and in Texas.