Trump Touts Strong August Jobs Report as White House Makes Economic Case Ahead of Midterms

President Donald Trump and his allies are pointing to a stronger-than-expected August jobs report as evidence that the U.S. economy is regaining momentum just weeks before voters head to the polls in the midterm elections.

The economy added 162,000 jobs in August, according to the Bureau of Labor Statistics, dramatically exceeding economists’ expectations of roughly 56,000 new positions.

The unemployment rate remained unchanged at 4.1%, while the number of Americans participating in the labor force increased.

The report also contained encouraging revisions to previous months. June’s employment gain was revised upward by 11,000 jobs to 31,000, while July was revised from a previously reported loss of 23,000 jobs to a gain of 21,000.

Taken together, the revisions added 55,000 jobs to the government’s previous estimates for June and July.

August also marked the strongest month for job creation in five months, providing the Trump administration with a significant economic talking point heading into the final stretch of the midterm campaign.

The gains were spread across several areas of the economy, although leisure and hospitality and local government education accounted for a large share of the increase.

Food services and drinking places added 59,000 jobs, while local government education gained 42,000.

Manufacturing employment increased by 16,000 jobs, while construction added 22,000 and healthcare employment rose by 13,000.

The household survey delivered additional positive signals. The number of employed Americans increased by 569,000 in August as the civilian labor force expanded by 683,000.

The labor-force participation rate climbed to 61.6%, up from 61.4% in July, although it remains below where it stood at the beginning of the year.

The number of Americans working part time for economic reasons also dropped by 414,000 to approximately 4.4 million.

Trump quickly celebrated the numbers, declaring that the report had shattered expectations and arguing that the economy would continue improving.

The president simultaneously renewed his pressure on the Federal Reserve to lower interest rates, arguing that a stronger American economy should allow businesses, consumers and the federal government to borrow money more cheaply.

The jobs report, however, could complicate that effort. A stronger labor market may give Federal Reserve policymakers greater confidence that the economy can withstand elevated interest rates while the central bank continues fighting inflation.

Average hourly earnings increased 3.1% from a year earlier, while inflation remains above the Federal Reserve’s 2% target.

The economic picture is also not uniformly positive. Information-sector employment declined by 23,000 jobs in August, and long-term unemployment remains elevated.

Americans continue to face pressure from borrowing costs and higher prices, particularly in housing and energy, meaning the strong headline employment numbers do not necessarily reflect every household’s financial experience.

Still, the August report represents a notable improvement from the sluggish hiring seen earlier in the summer.

With the midterm elections approaching, Trump and Republicans are expected to make the stronger labor market a central part of their economic message, while Democrats are likely to focus on inflation, affordability and household expenses.

The latest numbers give both sides plenty to debate, but one fact is clear: after months of concern about weakening employment growth, the American labor market delivered a significantly stronger performance in August than economists had expected.