U.S. employers continue to hire, but the unemployment rate moved up as more people looked for jobs.
Nonfarm payrolls increased 187,000 and the jobless rate increased three-tenths of a point to 3.8 percent in August, according to the latest estimates from the U.S. Bureau of Labor Statistics.
The jobless rate climbed to its highest level since February 2022, but reflected an increase of 736,000 people counted among those who began looking for work.
Payroll gains for the previous two months were revised down a total of 110,000 to 157,000 in July and 105,000 for June.
The latest numbers remain below the average monthly payroll gain of 271,000 over the past year.
For August, 6.4 million people were counted among those unsuccessfully looking for work. Of those, 1.3 million have been out of work for 27 weeks or longer, accounting for 20.3 percent of all those unemployed.
Another 4.2 million people were counted among those working part-time because their hours were cut or they were unable to find full-time positions.
The labor participation rate — the proportion of the population either working or looking for work — rose two-tenths of a point to 62.8 percent. That was the first increase in the rate since March, but still below the rate before the onset of the COVID-19 pandemic in the U.S. in early 2020.
Payroll gains for August were spread out among industry sectors.
Employment increased 71,000 in health care, most of the gain in ambulatory health care services.
Employment increased another 40,000 in leisure and hospitality, although payrolls in the sector remain below pre-pandemic levels.
Payrolls rose 26,000 in social assistance, 22,000 in construction and 19,000 in professional and business services.
Employment decreased 34,000 in transportation and warehousing and 15,000 in the information sector, most of that reflecting strike activity in the motion picture and sound recording industry.
The average workweek for employees on private, nonfarm payrolls edged up a tenth of an hour to 34.4 hours. The manufacturing work week remained unchanged at 40.1 hours for a fifth consecutive month.
Average hourly earnings for employees on private, nonfarm payrolls rose 8 cents to $33.82. Over the past year, average hourly earnings have increased 4.3 percent.