US economy added 162,000 jobs in August as unemployment rate held at 4.1%

The Bureau of Labor Statistics reported the US economy added 162,000 jobs in August while the unemployment rate remained at 4.1%.

June and July figures were revised up: June payrolls rose by 31,000 (previously 20,000) and July moved from an initially reported loss of 23,000 to a gain of 21,000 after revisions. Monthly job gains have ranged from 214,000 in March to 21,000 in July this year.

Payroll firm ADP said private employers added 38,000 jobs in August, the weakest monthly private-sector gain since January. Outplacement firm Challenger, Gray & Christmas reported announced layoffs are 41% lower than at this point last year.

A separate BLS report for July showed little change in job openings and layoffs, and quits remained flat, suggesting workers are less confident about finding new jobs.

Economists describe the labor market as in a “slow hire, slow fire” state, with neither clear expansion nor contraction. Inflation has risen from 2.4% in February to 3.4% in July, peaking at 4.2% in May, the highest since 2023.

Yields on US Treasury bonds have increased since the start of the war with Iran, adding upward pressure on borrowing costs such as mortgages and auto loans. Economists expect at least one Federal Reserve rate hike this year; Fed Chair Kevin Warsh said at the Jackson Hole symposium the Fed remains committed to bringing inflation to 2%, without outlining a specific next move.

Former President Donald Trump praised the jobs figures and urged lower interest rates on Truth Social, saying the country should have the lowest rates and threatening to “stop trading with countries with which we have a deficit” if the Fed does not reduce rates.