The
Labor Market Insights report provides a monthly overview of key labor market statistics.
As the changing workforce and economic conditions continue to be top of mind for workers compensation executives, this valuable resource delivers timely perspectives on what the latest jobs reports mean for the industry. The
data and insights shared in this monthly publication are designed to provide just-in-time information to help industry leaders make informed decisions.
Key Insights:
Employment increased by an estimated 162,000 jobs in August. Combined with upward revisions of 11,000 for June and 44,000 for July, this report is a major reversal from the sluggish growth reported earlier in the summer and late spring.
Employment growth was broad-based across industries, with declines only in the financial activities and information sectors. Leisure and hospitality had the largest growth of 62,000 jobs, bouncing back from declines in June and July. Government, health care, construction, and manufacturing also added substantial employment in August.
Average weekly hours ticked up in August along with employment. This led to a strong month for overall payroll growth despite hourly wage growth coming in at just 3.1% year over year, much closer to pre-pandemic norms than the elevated hourly growth seen in the last few years.
Employment growth in August came primarily from increased labor force participation rather than a decline in unemployment. The unemployment rate held steady at 4.1% as the labor force participation rate increased by 0.2 percentage points. Both rates are still slightly lower than they had been earlier in 2026.
Big Picture: The strong August employment numbers offset the relatively weak numbers from earlier in the summer. Employment growth averaged 71,000 jobs (or 75,000 private jobs) from June through August combined, very close to the three-year average. We view this report as a strong sign of a stabilizing labor market rather than as an acceleration.
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