US Jobs Expected to Rebound in August Amid Steady Labor Market

The US labor market is expected to rebound in August after a slow July, with employers adding around 55,000 workers during the month. This would put job growth roughly in line with the average pace seen so far in 2026.

According to economists, the unemployment rate will remain at 4.1%, based on a survey of households rather than businesses. The steady labor market and low levels of layoffs are giving the Federal Reserve more room to focus on inflation.

Fed Chairman Kevin Warsh said that steady demand for workers and low levels of layoffs are 'consistent with full employment'. This hawkish comment has pushed the chances of a September rate hike above 50%, according to Bloomberg Economics.