September 2026 Talent Market Insights
The latest U.S. Bureau of Labor Statistics (BLS) Employment Situation report shows stronger job growth in August, with employers adding 162,000 jobs. The unemployment rate remained unchanged at 4.1%, while labor force participation edged up slightly.
For employers, the August report points to increased hiring activity compared with recent months.
Key Takeaways from the August 2026 Jobs Report
162,000 jobs were added in August
Unemployment remained at 4.1%
Labor force participation increased slightly to 61.6%
Average hourly earnings increased 0.3% in August and 3.1% over the past 12 months
Manufacturing added 16,000 jobs
June and July job gains were revised upward by a combined 55,000 jobs
Job Growth by Industry
Job growth in August was concentrated in a few industries, while employment in many other major sectors changed little.
Industries adding or trending up in jobs:
Food services and drinking places: +59,000
Local government education: +42,000
Construction: +22,000
Manufacturing: +16,000
Health care: +13,000
Within manufacturing, machinery manufacturing and fabricated metal product manufacturing each added 6,000 jobs. Overall manufacturing employment has increased by 58,000 jobs since December 2025.
Industries with little change:
Transportation and warehousing
Wholesale trade
Retail trade
Financial activities
Professional and business services
Social assistance
Mining, quarrying, and oil and gas extraction
Other services
Industries losing jobs:
Information: -23,000
The August data shows stronger overall job growth than recent months, with gains extending into manufacturing. However, hiring activity continued to vary significantly by industry.
Unemployment and Labor Supply
The unemployment rate remained at 4.1% in August, with approximately 7 million people unemployed.
Labor force participation edged up to 61.6%, meaning a slightly larger share of the working-age population was either employed or actively looking for work. However, participation remains 0.5 percentage point lower than it was in January.
Additional labor supply indicators include:
Long-term unemployed: 1.9 million
People working part time for economic reasons: 4.4 million
Marginally attached to the labor force: 1.7 million
Discouraged workers: 441,000
People outside the labor force who currently want a job: 5.7 million
Wage Growth and Hours Worked
Wages continued to increase in August.
Average hourly earnings increased 0.3% in August and 3.1% over the past 12 months
The average workweek increased slightly to 34.4 hours
The manufacturing workweek increased slightly to 40.5 hours
Manufacturing overtime remained unchanged at 3.1 hours
What Employers Can Do Now
Plan for Hiring Needs Before They Become Urgent
Workforce needs can change quickly with shifts in demand, turnover, seasonal needs, or upcoming projects.
Looking ahead at anticipated headcount needs can give your team more time to build a candidate pipeline, plan coverage, and avoid having to fill multiple positions at once when staffing becomes critical.
Focus on the Roles Creating the Most Workforce Pressure
Hiring conditions can vary significantly by role and location, so the same approach may not work for every opening.
Look at where vacancies are affecting productivity, where turnover is highest, and which positions consistently take the longest to fill. Prioritizing those roles can help you focus recruiting and retention efforts where they’ll have the greatest impact on your operation.
Keep the Hiring Process Moving
A lengthy hiring process can make it harder to secure qualified candidates, especially for roles where employers are competing for the same talent.
Review the time between application, interview, offer, and start date. Reducing unnecessary steps and keeping communication moving can help prevent strong candidates from dropping out or accepting another opportunity.
Want to Learn More About Hiring Trends in Your Local Market?
At Verstela, we help employers turn labor market data into practical workforce decisions.
National reports provide useful context, but hiring conditions can look very different depending on your location, industry, and the positions you need to fill. Our team can help you understand local wages, talent availability, competitor hiring activity, and other factors affecting your workforce.
→ Request a Local Labor Market Review
→ Explore Employer Resources