There is good news across all signs in August’s employment report. Not only have an outstanding 162,000 jobs been added in the past month, but other indicators, such as the steady unemployment rate, increasing labor force participation, and decreased layoffs, signal a strong and stable economy.
Job growth has smashed expectations for August. Prior to the release of the report, economists predicted growth of 53,000 jobs. The true numbers more than triple that amount at 162,000 jobs. Job growth numbers for June and July have also since been revised and are much stronger than previously reported. The revised numbers show 11,000 more jobs were gained in June than originally stated, and 44,000 more jobs were added in July than the last report showed.
Women in particular have made massive gains this month. Out of the 162,000 jobs added in August, 158,000 were taken by women—around 98%. This is reflective of larger trends under the Trump administration, where women have driven job growth.
Another sign of stability is the decrease in layoffs. The total layoff pace in 2026 is the slowest in four years, remaining at a historically low 1.0% in the latest data. Not only are businesses hiring more employees this month, but they are keeping the workers they already employ. This is another signal of growth and overall security for workers.
Overtime hours also increased, up by 0.2% on a three-month average hourly pace. The Working Family Tax Cuts, which introduced no-tax-on-overtime and no-tax-on-tips provisions, encourage workers to take advantage of overtime opportunities. Being able to keep more of their pay motivates employees to put in extra hours.
Increasing labor force participation also strongly signals that the job market is stable. Labor force participation is trending upwards, rising to 61.6% in August and reaching its strongest level in nearly a year. Along with the steady unemployment rate, this suggests that Americans both want to and can take part in the workforce. Greater participation means greater production, strengthening the economy’s growth.
Industries that have gained jobs in August include food services and drinking places, local government education, health care, and manufacturing. Food services is a particular standout, adding 59,000 jobs, significantly above the monthly average for that sector over the past twelve months of 12,000 jobs. This is a particularly good signal for the economy as it shows Americans are continuing to eat out despite the conclusion of large tourist events, such as the highly impactful World Cup earlier in the summer.
Growth in local government education, reversing last month’s losses, was expected, as education employees return to work with schools heading back into session. Health care—the standout sector of the past twelve months, which gained, on average, 32,000 jobs per month since last August—continues to increase, as an aging population drives greater needs for health services. Finally, manufacturing increases, specifically machinery manufacturing and fabricated metal product manufacturing, indicate positive news for American factories.
Many different economic signals confirm the strength and stability of the economy. With incredible job gains in the past month, steady unemployment, decreased layoffs, and increased overtime, Americans can be certain that the economy is growing and has the structures to continue to grow.