US adds 162,000 jobs in August, putting focus back on inflation

**U.S. Job Growth Surges in August, Renewing Focus on Inflation**

**WASHINGTON** — The U.S. labor market experienced a significant rebound in August, with employers adding 162,000 jobs, a figure that far exceeded the 65,000 jobs projected by analysts in a FactSet poll. The national unemployment rate remained at 4.1 percent.

The Labor Department also issued upward revisions for the previous two months, adding 55,000 jobs to the June and July payrolls. Notably, the July figure was revised from an initial report of 23,000 job losses to a gain of 21,000.

President Donald Trump addressed the report on social media, stating, “Great jobs number just announced, breaking all estimates (except mine!) by double and triple.”

Despite the hiring gains, economic discourse remains centered on inflation. Voters have expressed concern over rising costs, particularly regarding fuel prices, which have reached record levels following military engagements involving the U.S., Israel, and Iran in late February.

Wage growth has struggled to keep pace with these costs. Average hourly wages rose 3.1 percent in August compared to the previous year, marking the weakest year-over-year increase since May 2021.

Sector-specific data showed growth in several areas:
* **Restaurants and bars:** Added 59,000 jobs.
* **Construction:** Added 22,000 jobs.
* **Manufacturing:** Added 16,000 jobs, bringing the sector’s total growth to 58,000 since December.

Conversely, the information industry, which includes telecommunications and data processing, lost 23,000 jobs in August. The sector has shed 97,000 positions since the beginning of 2026, a trend some analysts attribute to the integration of artificial intelligence.

Diane Swonk, chief economist at KPMG, described the report as “incredible,” noting that a broader measure of unemployment—which accounts for discouraged workers and those working part-time for economic reasons—fell to 7.7 percent, the lowest level in over a year.

The strength of the hiring report has shifted attention to the Federal Reserve’s upcoming meeting on Sept. 15-16. Fed Chair Kevin Warsh recently stated that inflation, currently at 3.7 percent by the Fed’s preferred measure, remains above the central bank’s 2 percent target. The robust job numbers may influence the Fed’s decision on whether to raise interest rates to further cool the economy. Fed Governor Christopher Waller indicated this week that he is leaning toward maintaining current rates but would support a hike if upcoming inflation data remains high.

Employers continue to navigate a constrained labor market, which economists attribute to the retirement of baby boomers and current immigration policies. In response, some firms are prioritizing efficiency through technology and AI.

While some industries are seeing AI replace human roles, others remain cautious. David Iancu, managing partner at the Milwaukee law firm Karp & Iancu, noted that while his firm is hiring, he views AI as a tool rather than a replacement for human staff, particularly in fields requiring interpersonal relationships. “I have no plans to replace people with AI,” Iancu said.

Article and image source: koreatimes.co.kr