The U.S. added a whopping 162,000 jobs in August after losses earlier in the summer, buoyed by a surge in the hospitality sector and teacher hiring ahead of the new school year.
The Bureau of Labor Statistics said the unemployment rate held steady at 4.1%.
Employment in manufacturing inched up, adding 16,000 jobs, for a net gain of 58,000 since December.
Health care continued to add jobs — 13,000 — but at a slower pace than usual, while information services declined by 23,000 jobs.
With midterm elections on the horizon, the stronger-than-expected report will be a relief for the Trump administration, which is battling concerns about stubborn inflation and high gas prices because of the Iran war.
The BLS revised June jobs data up by 11,000, from 20,000 to 31,000, and revised July upward by 44,000 jobs, from 23,000 jobs lost to a gain of 21,000.
Wall Street forecasts had expected a gain of around 53,000 jobs for August, so the report blew away expectations.
The Trump administration is optimistic about the months ahead, citing the construction of new factories and foreign investment in U.S. manufacturing.
“America is in the middle of a historic investment boom, and the August jobs report is the latest data point showing how Americans are benefiting from the Trump administration’s pro-growth policies,” White House spokesman Kush Desai said on social media. “The best is yet to come with even more job, wage, and economic growth in store for everyday Americans.”
Job gains were lackluster in 2025, as employers eased off a post-pandemic hiring frenzy and worried about factors such as new tariffs.
There had been signs of a jobs rebound earlier this year, turning the focus to high prices.
Diesel prices hit a record high on Friday, at $5.85 per gallon. Higher freight and transportation costs could trickle through supply chains, resulting in higher prices for everyday goods.
Jobs and inflation data have implications for the Federal Reserve, which sets benchmark interest rates for borrowing.
Central bankers cut interest rates last year because they were worried about sluggish job growth, but the focus right now is squarely on inflation. Some Fed members want to raise rates.
A rate increase would defy President Trump’s wishes. He wants the Fed to cut rates.
“One of the main reasons he cares a lot about interest rates is because he wants Americans to be able to afford a home,” Vice President J.D. Vance said at the White House briefing on Thursday. “When interest rates go higher, that means that borrowing costs are higher.”
“We believe that the Fed should be lowering interest rates,” Mr. Vance said.
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