September 2026 Labor Market Update

The August job market showed signs of improvement compared to recent months. According to the U.S. Bureau of Labor Statistics’ August 2026 Employment Situation report, nonfarm payroll employment increased by 162,000, while the unemployment rate remained stable at 4.1%. Additionally, June and July payroll estimates were revised upward by a combined 55,000 jobs, with July now showing a modest gain rather than the initially reported decline. Food services and local government education led job gains in August, while employment in the information sector declined.

According to ADP’s August National Employment Report, private-sector employment increased by 38,000 jobs, the slowest pace since January. Large employers accounted for most of the increase, while small employers, which had led job gains in recent months, added relatively few jobs in August.

Temporary help services added 6,800 jobs in August. Employment in the sector has increased in every month of 2026, marking its longest growth streak in more than five years. The trend points to continued demand for flexible staffing as uncertainty continues and permanent hiring remains measured across industries.

Overall, the August employment data points to an improving labor market, but hiring conditions continue to vary significantly by industry, employer size, and skill set. For employers, understanding the market for the specific skill sets they are hiring for remains critical to making informed hiring decisions. For professionals, understanding which employers and industries are adding jobs can help focus a search on opportunities that align with their experience.