The third quarter of 2026 brought a labor market that was neither booming nor breaking down. Instead, employers continued to operate in an environment of moderate job growth, relatively low unemployment and persistent cost pressures.
The unemployment rate held at 4.1% in August, while employers added 162,000 jobs. That August increase was significantly stronger than the average monthly gain of 31,000 over the previous 12 months, although revisions to earlier months show that hiring has been uneven throughout the year.
See what the latest labor market trends mean for employers from Q3
