Real Estate · Riyadh Daily
The U.S. job market rebounded in August as employers added a surprising 162,000 jobs. The unemployment rate stayed at a low 4.1%. Hiring far exceeded the 65,000 forecasters had expected, according to a poll by FactSet. Labor Department revisions also looked good, adding 55,000 to June and July payrolls. Employers created 21,000 jobs in July; the Labor Department had originally reported that they’d cut 23,000.
Two months before the midterm elections, President Donald Trump welcomed the strong hiring report. “Great jobs number just announced, breaking all estimates (except mine!) by double and triple,” he wrote in a social media post. But inflation has dominated conversations this year in business and households. Voters are increasingly frustrated by higher costs, particularly fuel prices that have hit record levels since the U.S. and Israel attacked Iran in late February. Average hourly wages rose 3.1% last month from a year earlier, the weakest year-over-year increase since May 2021.
Restaurants and bars added 59,000 jobs last month, construction companies 22,000, and manufacturers 16,000. Factory jobs are up by 58,000 since hitting a recent low in December. So far this year, employers—companies, government agencies, and nonprofits—have added an average of more than 80,000 jobs a month, up from a dismal monthly average of 9,700 last year. However, hiring remains well below the 166,000 monthly jobs that were the norm in 2023 and 2024, let alone the 491,000 a month recorded during the 2021-2022 hiring boom.
The U.S. labor force jumped by 683,000 last month after falling in June and July. A broad measure of the unemployment rate, which includes discouraged workers and those working part-time due to lack of full-time jobs, dropped to 7.7%, the lowest in more than a year. This report may increase the likelihood that the Federal Reserve will raise its key short-term interest rate on September 15-16. Solid hiring suggests current borrowing costs may not be high enough to restrain the economy and cool inflation.
Fed Chair Kevin Warsh noted that inflation, at 3.7% according to the Fed’s preferred measure, remains too far above the central bank’s 2% target. Without further progress, the Fed would have “work to do.” Fed governor Christopher Waller said he is leaning toward keeping the rate unchanged but would support a hike if inflation comes in high.
U.S. employers contend with a worker shortage due to President Donald Trump’s immigration crackdown and the retirement of baby boomers. Instead, businesses are increasingly focusing on boosting efficiency through technology and AI. The information industry, including telecommunications and data processing, lost 23,000 jobs last month and is down 97,000 since the start of 2026, a decline driven by AI replacing roles in customer service and software development. Trevor Freel, a senior recruiter at the American Medical Association, noted AI is replacing jobs in these areas.
Karp & Iancu, a Milwaukee law firm specializing in divorce and family law, added three employees this month and continues hiring in a measured way. Managing partner David Iancu emphasized that AI is a tool but not a substitute for human relationships, especially in sensitive areas like divorce or medical issues. He has no plans to replace people with AI.
Source: Los Angeles Times
