Image source, Getty Images By Michael Race Business reporter , Reporting from New York Published 4 September 2026, 13:54 BST Updated 4 minutes ago A boost in hospitality and education employment drove the US economy to create tens of thousands more jobs than expected last month, latest figures suggest. The number of roles added to the world's biggest economy increased by 162,000 in August, almost triple the 56,000 forecast by analysts. An increase in employment during the final month of the summer in restaurants and bars, as well as in local government education ahead of the new school year, was behind the rebound. The stronger jobs figures are likely to add to growing expectations that the Federal Reserve will increase interest rates later this month. Last week, Kevin Warsh, head of the US central bank, signalled that rates could be hiked if policymakers were not confident price rises were easing for Americans. Inflation, which measures price increases over time, remains above the Fed's 2% annual target, with prices up 3.4% in the past 12 months, according to the latest data. The next interest rate decision will be made on 15-16 September. Rates were left unchanged between 3.5% and 3.75% in July for the fifth time in a row, but concerns over inflation remain due to the ongoing conflict between the US and Iran, which has caused as surge in global oil prices. On Friday, US diesel prices hit an all-time high of $5.85 a gallon on average, compared to $3.71 a year ago. "Even the most committed dove would struggle to find anything in the August employment report to justify keeping interest rates unchanged," said Stephen Brown, chief North America economist at Capital Economics. He added that the strength in the jobs market meant that the latest inflation figures released next week would only need to be moderately above the Fed's target to fuel expectations of a September hike. "A hike in rates just became a bit more likely," said Neil Birrell, chief investment office of investment firm Premier Miton. Weaker job figures released earlier in the summer were revised up by the US Bureau of Labor Statistics, revealing a stronger labour market than previously thought. Instead of the economy being deemed to have shed 23,000 jobs in July, some 44,000 were found to have been created in subsequent estimates. While many more jobs were added, the US unemployment rate remained unchanged at 4.1% last month, with seven million out of work. Both measures have changed little over the year. Related topics Unemployment US economy United States Employment
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