Job Gains Eased in Summer Months, Unemployment Increased in August

Hiring cooled this summer and unemployment rose in August, signs the labor market is moderating in the face of high interest rates.

U.S. employers added 187,000 jobs last month, while payrolls in June and July were revised down a combined 110,000, the Labor Department said Friday. The monthly gain in August was well less than the average pace over the prior year, and far below the roughly 400,000 average monthly gain in 2022.

Total nonfarm payrolls, change from a month earlierSource: Labor DepartmentNote: Seasonally adjusted

The unemployment rate was 3.8% last month, up from 3.5% in July. Workers’ average hourly earnings rose 4.3% in August from a year earlier, slower than last year but well above the prepandemic pace.

Healthcare, leisure and hospitality, social assistance, and construction establishments increased their hiring, while employers in transportation and warehousing cut staff.