US Economy Adds 162k Jobs, Boosting Rate-Hike Odds Above 60%

The US Labor Department released its employment report for August 2026, showing that the economy added 162,000 jobs in the month. This is significantly higher than the average monthly gain of 31,000 over the prior 12 months.

The unemployment rate remained unchanged at 4.1 percent, while average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3 percent, to $37.75.

The strong job growth has increased the likelihood of a Federal Reserve interest rate hike at its September meeting. Rate futures now indicate about a 62% chance of a rate increase, up from roughly 55% before the report.