The US labor market showed limited stabilization in August as the labor force participation rate (share of adults working or seeking work) rose to 61.6% from 61.4% in July. The July figure was a five-year low, while August’s rate remained 0.7 percentage points below the 62.3% recorded in August 2025 and 0.5 percentage points lower than in January 2026. The civilian labor force expanded by 683,000 to 169.777 million, and total nonfarm payroll employment increased by 162,000. The unemployment rate was unchanged at 4.1%, while the employment-population ratio edged up to 59.1%. Long-term unemployment remained significant, with people unemployed for at least 27 weeks representing 27.0% of all unemployed workers. Food services and drinking places, along with local government education, led hiring, while the information sector lost jobs. The Bureau of Labor Statistics released the August Employment Situation on September 4. September data will help determine whether August’s employment gains reflected underlying demand or seasonal hiring patterns.