US total nonfarm payroll employment increased by 162,000 in August 2026, far above the average monthly gain of 31,000 over the prior 12 months. The reading was notable because rate futures subsequently indicated about a 62% chance of a Federal Reserve increase at its September 15–16, 2026 meeting, compared with roughly 55% before the report. The unemployment rate was unchanged at 4.1 percent.
The payroll increase and unemployment rate are separate labour-market readings, so the unchanged 4.1 percent rate does not alter the reported gain in nonfarm payrolls. A server-generated data table follows this introduction.
Data Snapshot
| Metric | Current | Previous | Change | Period | As of | Source |
|---|---|---|---|---|---|---|
| Total nonfarm payroll employment | 162,000 | 31,000 average monthly gain over the prior 12 months | increased by 162,000 in August | August 2026 | September 4, 2026 | U.S. Bureau of Labor Statistics |
| Unemployment rate | 4.1 percent | — | unchanged | August 2026 | September 4, 2026 | U.S. Bureau of Labor Statistics |
| Probability of a Federal Reserve rate increase | about a 62% chance | roughly 55% before the report | increased | September 15–16, 2026 meeting | September 4, 2026 | CU Today, citing Reuters |
| Average hourly earnings for all employees on private nonfarm payrolls | $37.75 | — | rose by 10 cents, or 0.3 percent | August 2026 | September 4, 2026 | U.S. Bureau of Labor Statistics |
August payroll growth exceeded prior 12-month pace
The US Bureau of Labor Statistics reported that total nonfarm payroll employment rose by 162,000 in August, compared with the 31,000 average monthly gain over the prior 12 months. The report placed the unemployment rate at 4.1 percent, unchanged for the month.
The contrast puts August’s headline payroll advance well above the pace cited for the preceding year. It also gave markets a fresh labour-market reading ahead of the Federal Reserve’s September policy meeting.
Food services and local education drove gains
Food services and drinking places added 59,000 jobs in August, making the sector a major contributor to the overall payroll increase. Local government education added a further 42,000 jobs, according to the BLS.
Not all sectors moved higher. Information employment declined by 23,000 during the month, offsetting part of the gains elsewhere in the employment report.
Private-sector hourly earnings reached $37.75
Average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3 percent, to $37.75 in August. This wage measure covers private nonfarm payroll employees, rather than the total nonfarm payroll employment figure that includes government employment.
The increase arrived alongside the payroll gain and unchanged unemployment rate, adding another reported measure to the month’s labour-market picture.
Rate futures lifted September hike odds to about 62%
Following the employment report, rate futures indicated about a 62% chance of a Federal Reserve increase at the September 15–16, 2026 meeting, up from roughly 55% before the report, CU Today, citing Reuters, reported.
The September 15–16 meeting was the next policy window identified by the market-pricing data. The futures figures represented market-implied probabilities, not a Federal Reserve decision.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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