Actalent Labor Market and Economy Report: A Look at Trends in August 2026

U.S. employment increased by 162,000 in August, exceeding expectations. July's loss of 23,000 jobs was revised to a gain of 21,000, indicating that employment remained relatively flat last month, but was not negative as initially reported.

By industry, significant gains were seen in food and drinking services (+59,200), and local government education (+41,900). Employment declined in the information industry (-23,000).

Revisions to prior months suggest stronger job gains than initially reported. June's employment increase was revised from 20,000 to 31,000, while July's change was revised from a loss of 23,000 jobs to a gain of 21,000.

Among the industries Actalent supports, the aerospace and defense sector continues to post strong hiring activity, with employment in the aerospace products and parts industry up 4.6% year-over-year (YOY). The architectural, engineering and related services industry also remains strong, with employment up 2.3% YOY, while healthcare employment is up 2.1% YOY. Unemployment rates for engineering and scientific workers, along with the industries that employ them, remain below the national average, indicating a competitive market for skilled STEM talent.

Average hourly earnings rose 3.1% in August, continuing the recent moderation in wage growth. Wage growth outpaced inflation from May 2023 through March 2026, but has recently fallen behind increases in the Consumer Price Index (CPI). As a result, inflation-adjusted, or "real," earnings have declined, reducing the purchasing power of many consumers.