US labor market shows job growth alongside rising long-term unemployment

The United States labor market showed divergent trends in August. While the economy added 162,000 jobs—surpassing consensus forecasts—new research from the Richmond Federal Reserve highlights growing challenges for the long-term unemployed.

Long-term unemployment, defined as being out of work for 27 weeks or longer, rose to 27 percent of the total unemployed population in August, totaling approximately 1.93 million people. This is an increase from 25.5 percent in July. Economists suggest a ‘low-hire, low-fire’ environment is making it increasingly difficult for those who have been unemployed for extended periods to re-enter the workforce.

Simultaneously, the manufacturing sector reported growth, adding 16,000 jobs in August. This brings the sector's total gains to 58,000 since December 2025. Significant growth was noted in machinery manufacturing, fabricated metal products, computers, electronics, and chemicals. These gains align with national strategic interests in strengthening domestic industrial capacity for infrastructure, energy, and national defense.