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Is the job market strong right now?

Unemployment is 4.1% as of Aug 2026. The broader U-6 measure, which includes underemployed and discouraged workers, is 7.7%.

The September 2026 Jobs Read

Workers have less bargaining power now as job growth has slowed and wage gains are cooling.

Job openings have fallen and wage growth is down to 3.09% from earlier highs. Unemployment remains low, but the labor market is losing momentum.

Balanced Payrolls 162K Quits rate 1.9%
Latest observations through September 2026 · Unemployment observation Aug 2026 · Refreshed Sep 10, 2026 · Sources: FRED, BLS
Worker Power Index · higher = more leverage
56/100
Balanced
0 · Low leverage100 · High leverage
Recent trendpeak 68 · Dec 2025
Your ability to negotiate for better pay or move to a new job is weaker than it was months ago. How this score is built →
4.1%
Aug 2026
162K
+141KAug 2026
7.27M
+0.09MJul 2026
1.9%
-0.1ppJul 2026
3.09%
-0.1ppAug 2026

Unemployment vs U-6 since 2021.

The headline rate is what gets reported. U-6 counts underemployed and discouraged workers too.

Unemployment Rate U-6 Underemployment Rate

What changed

Job openings have fallen and wage growth is down to 3.09% from earlier highs. Unemployment remains low, but the labor market is losing momentum.

What it means for you

Your ability to negotiate for better pay or move to a new job is weaker than it was months ago. If wages keep falling and employers have fewer reasons to compete for workers, your earning power could stall. Watch whether companies continue to hire at current levels or start cutting jobs—that will tell you if the market has truly cooled or is headed toward real trouble.

What to watch next.

Sep11 CPI.
Sep16 Retail Sales.
Sep17 Housing Starts.

Latest jobs analysis.

Written after each data release. Plain English, no jargon.

Quick answers.

The questions people actually ask about the job market, answered from the data above.

What is the current US unemployment rate?
As of Aug 2026, the US unemployment rate is 4.1%. The broader U-6 measure, which includes underemployed and discouraged workers, is 7.7%.
Are companies still hiring?
Nonfarm payrolls changed by 162K in Aug 2026, and JOLTS job openings were 7.27M in Jul 2026. Fewer postings than the peak, but still an active hiring market.
Is it a good time to ask for a raise or switch jobs?
The quits rate — how many workers are voluntarily leaving jobs, a proxy for confidence — is 1.9%. Average hourly earnings are growing 3.09% year-over-year. Lower quits and cooling wage growth together suggest workers have less leverage than in recent years.
What is the Labor Leverage Index?
A 0-100 score built from job openings, payroll growth, quits rate, jobless claims, wage growth, and underemployment. Higher means more bargaining power for workers. The current read is 56 — balanced.