Jobs Report Smashes Expectations. See The Numbers.

News admin September 4, 2026 0 Comments

Jobs Report Smashes Expectations. See The Numbers.

Employers in the United States added 162,000 jobs in August, crushing expectations of 53,000. The unemployment rate stayed unchanged at 4.1%

The new report also revised July’s weaker jobs report from a 23,000 decline to a gain of 21,000 jobs. Job gains in August were led by education, manufacturing, construction, the food service industry, and healthcare.

Education added 42,000 jobs, which was expected as teachers were added back to the payroll with school starting and offsetting a decline in July. Manufacturing jobs continued to rise, adding 16,000 jobs, signaling continued strength in the industry.

Since December, manufacturing jobs are up 58,000. Construction jobs increased by 22,000. Construction jobs were one of the only positive growth areas in July’s jobs report. Typically, strong growth in construction jobs often leads to growth in manufacturing jobs. Healthcare also added to its upward trend with 13,000 jobs in August. The food and beverage industry increased by 59,000 jobs.

Wages also had a slight increase. Average hourly earnings rose by 0.3% in August to $37.75. Over the past 12 months, wages are up 3.1%

President Donald Trump’s National Economic Council Director Kevin Hassett told CNBC, “This number was way, way better than I expected. … We went back and looked and 77 people posted their forecast at Bloomberg, and this blew past everybody. … It’s really a blockbuster number.”

Hassett attributed the “blockbuster number” to Trump’s policy success. “Capital spending is through the roof. It’s getting set to about double since President Trump took office relative to GDP and you’re seeing the construction of factories through the roof,” he said.

Hassett argued that capital spending is up because of Trump’s tariffs causing companies to onshore activity, along with tax changes related to depreciation.

“The expensing is making people want to invest like crazy, which is creating construction jobs,” he added.

Under the Trump administration’s “Big Beautiful Bill,” companies are able to expense 100% of the equipment they put to use in the first year — meaning that if a company bought $1 million of new machinery, it could deduct that $1 million immediately from its taxable income rather than spreading the deduction over the equipment’s useful life.

Hassett said the momentum from the positive jobs reports might deter the Federal Reserve from raising rates.

“In his most recent statements as [Fed] Chairman [Kevin] Warsh, he thinks that you really got to keep your eyes focused like a hawk on inflation and that if you’ve got growth that’s supply side than it doesn’t necessarily mean you have to raise rates, it’s the same thing that Greenspan believed,” he said.

He added that the Fed’s eyes will be on the inflation numbers set to come out next week. Trump, however, isn’t waiting on the inflation numbers from the Consumer Price Index next week to weigh in on his thoughts for the Fed. Trump wrote on Truth Social Friday, “Great jobs number just announced, breaking all estimates (except mine!). … Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!”

Trump then pressured Warsh and the Board of Governors to “get smart” and “be patriots for change.”

Roughly $10 trillion in federal debt is expected to mature during 2026, requiring the Treasury Department to refinance it. Lower borrowing costs would reduce the government’s interest expenses as that debt is rolled over.

The Fed, however, must also weigh the risk that lower rates could intensify inflation, which has remained above its 2% target for more than five years. The war with Iran has added to those pressures by driving oil prices higher. Warsh has emphasized that the central bank remains committed to restoring price stability and has warned against declaring a premature victory over inflation.