US adds 162K jobs in August, far exceeding expectations; post-9/11 veteran unemployment falls to 3.5%

The unexpected addition of 162,000 jobs to U.S. payrolls last month drove the unemployment rate for post-9/11 veterans down more than a full percentage point, from 4.7% in July to 3.5% in August, the Bureau of Labor Statistics (BLS) reported Friday.

The unemployment rate for all veterans also declined, falling from 4.2% in July to 3.4% in August, compared to the overall national unemployment rate of 4.1%. The improvement comes as the economy rebounded from negative job creation in July, when employers shed 23,000 jobs.

The 162,000 jobs added in August far exceeded most analysts' expectations of 53,000 jobs, providing evidence of the economy's resilience amid the war with Iran, rising gas and diesel prices, and a new tariff war with Canada.

Sector Highlights

The surge was led by employment in food services and bars, which added 59,000 jobs in August—compared to an average monthly gain of 12,000 in that sector over the previous 12 months, according to the BLS report.

Other notable gains included:

• Local government schools: Added 42,000 jobs in August.
• Manufacturing: Continued its upward trend, adding 16,000 jobs in August, bringing the total manufacturing jobs added this year to 58,000.
• Construction: Added 21,000 jobs in August to meet demand for new data centers.

Political Reaction

President Donald Trump quickly seized on the latest BLS numbers as evidence of his administration's success in managing the economy, arguing that the Federal Reserve Board should cut interest rates at its next Open Market Committee meeting on Sept. 15–16.

"Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!" Trump said. "A STRONG COUNTRY MEANS A LOWER INTEREST RATE - IT'S A BETTER CREDIT…Very simple! We should have the LOWEST RATE of any country in the World, like 'the old days.'"

Expert Analysis

The main takeaway from the latest jobs report is that "it's a lot easier to get a job [now] than it was a year ago," said Heather Long, chief economist for the Navy Federal Credit Union. In a phone interview with Military Times, Long noted the 21,000 construction jobs added in August to cope with demand for new data centers.

However, Long expressed concern that wage gains were not keeping pace with inflation. Wages rose 3.1% in August, while inflation stood at 3.4%, she noted.

The turnaround in the jobs market has been a boon for veterans seeking work in what has been described as a "low hire, low fire" economy, said Kevin Rasch, a retired Navy Commander and the Warriors to Work Regional Director for the Wounded Warrior Project.

"We're seeing success in placing Warriors," he said in a telephone interview with Military Times. "The system seems to be working like it should" and "seems like what we're doing is working."