Labor Market and Economy Report: A Look at Trends in August 2026

U.S. employment increased by 162,000 in August, exceeding expectations. July's loss of 23,000 jobs was revised to a gain of 21,000, indicating that employment remained relatively flat last month, but was not negative as initially reported.

By industry, significant gains were seen in food and drinking services (+59,200), and local government education (+41,900). Employment declined in the information industry (-23,000).

Revisions to prior months suggest stronger job gains than initially reported. June's employment increase was revised from 20,000 to 31,000, while July's change was revised from a loss of 23,000 jobs to a gain of 21,000.

Among the job categories Aston Carter supports, job postings increased month-over-month across accounting and finance (+3.1%), HR and talent acquisition (+0.9%) and supply chain and procurement (+3.7). Demand was particularly strong for tax analysts and specialists, with postings rising from 9,006 in July to 15,751 in August. August typically marks the beginning of seasonal hiring for the upcoming tax season, driving increased demand from employers such as H&R Block and Intuit TurboTax. Other occupations that saw notable month-over-month gains included dispatchers (+1,943 postings), auditors (+1,072), logisticians and supply chain specialists (+1,035), accountants (+874), and schedulers and operations coordinators (+857). 

Average hourly earnings rose 3.1% in August, continuing the recent moderation in wage growth. After outplacing inflation from May 2023 through March 2026, wage growth has recently fallen behind increases in the Consumer Price Index (CPI). As a result, inflation-adjusted, or "real," earnings have declined, reducing the purchasing power of many consumers.