Weekly Economic Recap 8.31 - 9.6

Weekly Economic Recap: August 31 – September 6, 2026

A look back at the week's key economic data releases, covering the labor market, housing, and wages.

Labor Market

Job Openings (JOLTS)- US job openings rose by 89,000 to 7.271 million in July 2026, up from a revised 7.182 million in June but still below the expected 7.30 million. Gains came mainly from durable goods manufacturing, health care, wholesale trade, and construction, while transportation/warehousing/utilities and professional/business services saw declines. Regionally, openings increased in the Midwest and West but fell in the Northeast and South. Hires, separations, quits, and layoffs all stayed roughly flat over the month.

Job Quits- US quits fell by 157,000 to 3.06 million in July 2026, down from a revised 3.21 million in June. The decline was led by accommodation and food services, professional and business services, and other services. Regionally, quits dropped in the West and Northeast but rose in the Midwest and South. The quits rate slipped to 1.9% from 2%, staying near its lowest level since 2020 and pointing to continued worker reluctance to leave jobs voluntarily.

Jobless Claims- US initial unemployment claims rose by 2,000 to 206,000 in the fourth week of August, close to expectations and still near the near-60-year low of 189,000 hit in mid-July. The 4-week average of claims increased to 207,250 for the week of August 29, up from 205,750 the previous week — historically averaging 359,150 since 1967, with an all-time high of 5,288,250 in April 2020 and a record low of 179,000 in May 1969. Continuing claims rose by 8,000 to 1,779,000 (up from 1,771,000 the prior week), reflecting continued labor market resilience despite a recent unexpected drop in payrolls and supporting some Fed officials' view that the economy is near full employment. Historically, continuing claims have averaged 2,724,360 since 1967, with an all-time high of 23,130,000 in May 2020 and a record low of 988,000 in May 1969. Separately, initial claims from federal employees fell by 53 to 337, amid ongoing efforts to shrink the federal workforce.

Labor Force Participation-The US Labor Force Participation Rate rose to 61.60% in August 2026, up from 61.40% in July. Historically, the rate has averaged 62.82% since 1948, with an all-time high of 67.30% in January 2000 and a record low of 58.10% in December 1954.

Housing & Mortgage Market

Mortgage Rates- Mortgage rates in the US ticked up slightly to 6.79% for a 30-year fixed loan in the week ended August 28, up from 6.78%, staying near the one-year highs hit in late July. The rise followed higher Treasury yields amid renewed Middle East tensions and hawkish Fed commentary pointing to a possible September rate hike, with rates up nearly 70bp since US-Israel strikes on Iran began in late February.

Mortgage Applications-US mortgage applications rose 0.8% in the last week of August 2026, offsetting the prior week's 1.0% decline, as benchmark mortgage rates held mostly steady. Refinance applications, which are more rate-sensitive, dipped 1.1%, while purchase applications increased 2.2%.

Wages & Earnings

Average Hourly Earnings-US average hourly earnings for private-sector employees rose 0.3% (10 cents) to $37.75 in August 2026, following an upwardly revised 0.2% gain in July and matching forecasts. For production and nonsupervisory employees, earnings rose 0.3% (11 cents) to $32.53. Year-over-year, earnings grew 3.1% in August — the slowest pace since May 2021 — matching July's 3.1% gain and coming in just above the 3% forecast.

The Takeaway

The week's data paints a picture of a labor market that remains resilient but is cooling at the margins — steady job openings and low jobless claims alongside falling quits and slowing wage growth — while mortgage rates and applications held roughly steady amid ongoing geopolitical and rate uncertainty.