The nation added 187,000 jobs in August and an average of 236,000 per month this year. That’s a more sustainable rate than the monthly average of 399,000 jobs in ’22 and 606,000 in ’21. August’s growth is also more in line with that of ’19, when gains averaged 163,000 per month.

The unemployment rate rose from 3.5 percent in July to 3.8 in August. This was due to more Americans seeking work, not a surge in layoffs. Last month, 736,000 Americans entered the workforce, the biggest bump since January of this year. 

The labor force participation rate (LFPR) rose from 62.6 percent to 62.8 percent. This is the highest it’s been post-pandemic. After a dip in July, the LFPR for prime-aged workers, those between 25 and 54, returned to 82.5 percent. That’s the highest it’s been since March ’02.

The number of job openings has declined significantly. There were 8.8 million unfilled positions in July, down from a peak of 12.0 million in March ’22. “Quits,” also known as “voluntary separations,” or more colloquially “job hopping,” have fallen to the lowest level since February ’21. The drop in openings and quits should ease pressure on wages and inflation.

The Bureau of Economic Analysis reported the economy grew 2.1 percent in Q2/23 adjusted for inflation. In the ten years prior to the pandemic, growth averaged 2.3 percent per quarter. The Federal Reserve Bank of Atlanta estimates U.S. GDP is currently growing at a 5.6 percent annual rate, but that’s likely to be revised downward as additional economic data becomes available.

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Note: The geographic area referred to in this publication as “Houston,” "Houston Area” and “Metro Houston” is the nine-county Census designated metropolitan statistical area of Houston-The Woodlands-Sugar Land, TX. The nine counties are: Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery and Waller.