[September 2026] US Jobs Report Shows 162,000 Increase | What Happens to Stocks and USD/JPY?

In the jobs report for August released on 4 September 2026, payrolls increased by 162,000 from the previous month, while the unemployment rate was unchanged at 4.1%. Average hourly earnings rose 0.3% from the previous month and 3.1% from the same month a year earlier, while the labor force participation rate was 61.6%. Revisions were made to prior figures, including those for July and June. Overall, the data showed that economic resilience and an employment recovery were progressing at the same time.

Immediately after the release, all 3 major US stock indexes fell, while US Treasury yields rose modestly. Although the market welcomed the recovery in employment, it remained mindful of the possibility of further rate hikes, and higher interest rates weighed on stock prices. USD/JPY rose into the 156 range, indicating a weaker yen, although other factors, including the outlook for Bank of Japan policy, are also at play.

By sector, notable increases were seen in food services and local government education, which accounted for most of the overall gains. By contrast, the information and financial sectors declined or remained subdued. Monthly changes are heavily influenced by seasonal factors, and the 3-month average showed an increase of approximately 71,000 per month, making it difficult to judge whether the economy is accelerating based on a single month’s growth alone.

The focus going forward will be the release of the CPI and monetary policy developments in Japan and the US. CPI will be released on 11 September, and the outlook for interest rates and the stock market reaction will depend on whether inflation comes in above or below expectations. With the schedules for the FOMC and Bank of Japan meetings overlapping, differences in monetary policy could affect the broader market.