Leisure and Hospitality Lead Job Gains as August Hiring Slows

Key Points

• Leisure and hospitality led U.S. job gains in August, adding 50,000 jobs and seeing a 4.5% pay increase for workers.
• Overall private sector hiring slowed sharply, and U.S. employers announced a significant increase in job cuts.
• Travel spending has weakened, particularly among lower-income households, while high-income consumers continue to drive demand.

Summary

In August, the U.S. saw a significant slowdown in private sector hiring, with overall job gains dropping and job cuts rising to their highest August level since 2020. The leisure and hospitality sector was a notable bright spot, leading all industries in job creation and wage growth. However, travel spending has declined among lower-income households, with high-income consumers remaining the primary drivers of demand in the sector.