Hiring Picked Up in August, With 162,000 New Jobs -- Update

By Justin Lahart

The U.S. added 162,000 jobs in August, the Labor Department said Friday, well ahead of expectations.

That compared with a net 21,000 jobs in July. It was far better than the 53,000 jobs that analysts polled by The Wall Street Journal had expected.

The unemployment rate stayed at 4.1%, in line with expectations.

A new normal for job growth?

The U.S. has entered a phase where economists believe the country doesn't have to add many jobs a month to keep the labor market steady.

The population is aging-the youngest of the baby boomer generation is eligible for Social Security retirement benefits this year-while the clampdown on immigration has reduced the supply of new workers into the labor force. In other words, the U.S. simply doesn't have enough available people to deliver significant job growth.

Economists at Bank of America estimate that employment growth of about 20,000 jobs a month is sufficient to keep the unemployment rate from rising. Historically, that is an extremely low level of job growth. The average pace over the quarter-century before the pandemic was about 120,000.

Low hire, low fire

Meanwhile, the job market remains enmeshed in an environment where employers aren't letting many people go, but also seem reluctant to bring new workers on. Initial claims for unemployment benefits, for example, are near their lowest levels on record, but Labor Department figures released earlier this week show that hiring rates are also depressed.

As a result, people who are secure and happy in their work have little to worry about. But for people who are trying to break into the job market, such as college graduates, or those looking for a change, it is challenging. In an August Gallup poll released earlier this week, only 34% of respondents said it was a good time to find a quality job.

Write to Justin Lahart at Justin.Lahart@wsj.com

(END) Dow Jones Newswires

September 04, 2026 08:37 ET (12:37 GMT)