The United States added 162,000 nonfarm payroll jobs in August, and the unemployment rate remained unchanged at 4.1 percent, according to the Bureau of Labor Statistics’ (BLS) monthly employment report.
Republicans on the Joint Economic Committee (JEC), chaired by Arizona Republican Rep. David Schweikert (AZ-01), reported that the increase included 127,000 private-sector jobs and 35,000 government jobs. The total was more than three times the 53,000-job forecast cited in the committee’s Monthly Employment Update.
Labor Day weekend starts with a BOOM: August jobs numbers BLEW past expectations. 💥
August’s national gain exceeded the average monthly increase of 31,000 jobs recorded during the preceding 12 months. The national labor force participation rate increased by 0.2 percentage points to 61.6 percent, and the broader U-6 unemployment rate declined by 0.2 percentage points to 7.7 percent.
August jobs increased by 162K jobs (+127K private sector, +35K gov), more than 3Xs expectations of 53K. The unemployment rate held steady at 4.1% while the labor force participation rate ticked up 0.2pp to 61.6%. July job openings, a measure of labor demand, increased by 89K.…
— Joint Economic Committee Republicans (@JECRepublicans) September 4, 2026
The latest state-level figures cover July, while the newest national report covers August. Arizona added 2,300 seasonally adjusted nonfarm payroll jobs during July, and the state unemployment rate remained at 4.9 percent.
Arizona’s July gain followed an increase of 2,700 jobs in June. The state’s private sector added 1,900 jobs in July after adding 2,500 during the preceding month. Arizona’s total nonfarm and private-sector payroll employment each increased during nine of the 12 months ending in July.
Over the 12 months ending in July, Arizona added 23,100 seasonally adjusted nonfarm payroll jobs and tied for 11th among the states and District of Columbia in percentage payroll growth. The private sector added 29,900 jobs during the same period, placing Arizona in a tie for ninth in percentage private-sector payroll growth. The difference reflects a net decline of approximately 6,800 government payroll jobs during the period.
Private education and health services recorded Arizona’s largest monthly sector gain in July, adding 1,600 jobs. Professional and business services added 1,300. Leisure and hospitality employment declined by 1,600 jobs, and construction declined by 1,300.
From July 2025 through July 2026, Arizona’s private education and health services sector added 18,900 jobs, and professional and business services added 11,700. Leisure and hospitality employment declined by 7,900 jobs, and financial activities declined by 4,500 during the period.
Arizona’s 4.9 percent unemployment rate was unchanged from June and stood 0.6 percentage points above its July 2025 rate of 4.3 percent. A total of 181,297 Arizonans were unemployed in July.
The state’s labor force participation rate declined from 60.3 percent in June to 60.1 percent in July, placing Arizona 37th nationally. The July figure was Arizona’s lowest participation rate in 10 years and stood two percentage points below its July 2025 level.
Arizona’s seasonally adjusted labor force decreased by 14,355 people during July and by 92,368 over the preceding 12 months. The state had approximately 3.286 million seasonally adjusted nonfarm payroll jobs in July.
Nationally, leisure and hospitality led sector growth in August with 62,000 jobs, followed by state and local government with 40,000. Information employment declined by 23,000 jobs, and financial activities declined by 11,000.
The BLS revised July’s national payroll estimate upward by 44,000 jobs, changing the previously reported loss of 23,000 jobs to a gain of 21,000. June’s estimate was revised upward from the previous calculation of 20,000 jobs to a final gain of 31,000. The revisions increased the combined June and July total by 55,000 jobs.
Average nominal weekly earnings for all private nonfarm employees increased 3.69 percent nationally from August 2025 through August 2026, and average nominal hourly earnings increased 3.09 percent. Average hourly earnings reached $37.75 in August.
Separate federal data showed 7.271 million job openings nationwide in July, an increase of 89,000 from June. The job-openings rate increased by 0.1 percentage points to 4.4 percent, with the BLS characterizing both measures as little changed in its Job Openings and Labor Turnover Survey.
The BLS is scheduled to release its September national employment report on Oct. 2.
The U.S. trade deficit widened to $88.58 billion in July, increasing $17.39 billion from June and ending the month 43 percent above its 12-month average, according to an analysis released Thursday by Republicans on the Joint Economic Committee (JEC).
The Bureau of Economic Analysis (BEA) and U.S. Census Bureau reported that the deficit increased 24.4 percent from a revised $71.2 billion in June. Total exports declined $6.6 billion to $310.7 billion, and imports increased $10.8 billion to $399.3 billion.
The monthly figures are seasonally adjusted and are not adjusted for changes in prices.
The July increase occurred within a year-to-date decline in the trade gap. Through the first seven months of 2026, the goods and services deficit was $188.4 billion, or 29.6 percent, lower than during the same period in 2025. Exports increased $237.2 billion, or 12 percent, and imports increased $48.8 billion, or 1.9 percent.
The latest figures were released as the Trump administration continues rebuilding its tariff framework following legal setbacks and imposing new duties on goods from dozens of countries.
The goods deficit increased $17.62 billion to $119.59 billion, placing it 31 percent above its 12-month average. The services surplus increased by $225 million to $31.02 billion, reaching 5 percent above its 12-month average.
Exports of goods declined $6.2 billion to $201 billion during July. The decrease included reductions of $4.5 billion in crude oil exports and $3.9 billion in nonmonetary gold exports. Imports of goods increased $11.4 billion to $320.6 billion, led by increases of $6.9 billion in computers, $6.6 billion in computer accessories, and $1.2 billion in semiconductors.
The Washington Times attributed much of the technology-related increase to demand associated with the expansion of artificial intelligence infrastructure. Computers, computer accessories, and semiconductors produced a combined monthly import increase of approximately $14.7 billion.
Total trade deficit in July was $88.58B, 43% above the 12-month average. In trade of goods, the US ran a trade deficit of $119.59B, 31% above the 12-month average. In trade of services, the US ran a trade surplus of $31.02B, 5% above the 12-month average. https://t.co/SWQZ1mDv7e
— Joint Economic Committee Republicans (@JECRepublicans) September 3, 2026
Over the 12 months ending in July, the United States recorded a total trade deficit of $743.58 billion. The country ran a $1.10 trillion deficit in goods and a $353.73 billion surplus in services. Total exports reached $3.67 trillion, and imports totaled $4.41 trillion during the period.
Vietnam accounted for the largest goods trade deficit over the 12-month period at $219.12 billion, representing 20.39 percent of the total goods deficit. Mexico followed at $213.35 billion, or 19.85 percent, and Taiwan ranked third at $203.67 billion, or 18.95 percent.
The largest goods trade surpluses were recorded with the Netherlands at $79.74 billion, the United Kingdom at $45.12 billion, and Hong Kong at $43.90 billion. The BEA’s July report also recorded monthly goods deficits of $27.5 billion with Mexico, $23.3 billion with Vietnam, $18.1 billion with Taiwan, and $15.2 billion with China.
Civilian aircraft, engines, equipment, and parts; nonmonetary gold; and crude oil were the country’s three largest goods exports by value during the 12 months ending in July. Together, the categories accounted for 17.94 percent of exported goods.
U.S. goods exports to Mexico totaled $370.39 billion, followed by Canada at $337.85 billion, and the United Kingdom at $109.39 billion. The three countries accounted for 34.62 percent of U.S. goods exports during the period.
Computers, computer accessories, and pharmaceutical preparations were the three largest imported-goods categories by value, accounting for 20.89 percent of all goods imports. The United States imported $583.73 billion in goods from Mexico, $385.96 billion from Canada, and $271.07 billion from China. Together, the three countries supplied 36.11 percent of U.S. goods imports over the 12-month period.
The Trump administration has presented tariffs as a mechanism for encouraging domestic manufacturing, protecting U.S. industries, and producing federal revenue. Commerce Secretary Howard Lutnick said the administration is pursuing a policy under which companies that manufacture products in the United States would avoid tariffs applied to imported goods.
In a Friday social media post, President Trump connected trade policy with his call for the Federal Reserve to lower interest rates.
“Lower the rate or I’ll stop trading with countries with which we have a deficit,” Trump said.
Trump: U.S. Has the Right to Stop Trading With Deficit Countries
President Donald Trump says the U.S. has leverage over countries running trade deficits, arguing America has the right to stop trading with them if necessary.
Trump wrote that the United States should have the lowest interest rate in the world and said ending trade with countries that maintain surpluses with the U.S. would be “better than tariffs.”
The BEA and Census Bureau are scheduled to release their August trade report on Oct. 6.
The Joint Economic Committee (JEC) chairman, Republican Rep. David Schweikert (AZ-01), says the government’s inaction on the $40 trillion national debt is “immoral.”
The JEC leader issued a statement on Thursday after the national debt reached a new record high of more than $40 trillion. This fiscal year, the U.S. added more than $2.4 trillion to the national debt. The JEC noted in its press release that interest payments on the national debt make up the fourth-largest line item in the federal budget.
Schweikert said the debt posed “a dangerous fiscal trajectory” that forecasts future economic demise as well as the reality that the national debt will consume most of federal spending.
“Our debt is quickly switching from sustainable, business as-usual, to an unsustainable, market-unraveling nightmare. At this rate, it won’t be long before we face catastrophic consequences,” said Schweikert. “Congress must take the math seriously and act now by charting a new economically responsible path to secure our nation’s future for generations to come. To do nothing or keep on this path is flat out immoral.”
The Government Accountability Office (GAO) has defined that unsustainability as an economy growing at a much slower pace than the debt.
Rising federal debt will raise borrowing costs, such as for home and car loans; stagnate wages and curb investments; and increase the costs of goods and services overall, if not lead to shortages.
Deficits have only continued to grow despite the announced goals and promises from Trump administration leaders.
Treasury Secretary Scott Bessent established a substantial goal of deficit reduction: three percent of GDP by 2028. Deficits have grown. Bessent has said that the war in Iran, tariff refunds, and misappropriated tax cuts have been the main culprits behind stunted improvements to deficits.
The federal response to the COVID-19 pandemic represented unprecedented spending, as noted by the GAO in its page dedicated to federal debt and debt management.
One of President Donald Trump’s promises upon his initial election in 2016 was to eliminate the national debt within two terms. At the time, the national debt was more than $19 trillion.
The GAO projected in March that continued federal deficits will add an average of $2 trillion to the debt annually through 2036. If unchecked, debt will surpass $60 trillion.
Based on those projections the GAO has, like Schweikert, characterized the debt progression as an unsustainable fiscal path and urged Congress to develop a debt reduction strategy, which it had urged previously in 2020.
In its March publication, the GAO renewed its recommendations to Congress from 2020 as well as a recommendation from 2015 and 2020. The 2015 recommendation encouraged Congress to replace the current debt limit process with a clearer approach to link decisions on debt to decisions on revenue and spending.
The GAO also reported that the Department of the Treasury has increased the size and frequency of its debt auctions since fiscal year 2014. In fiscal year 2025, the GAO reported that the Treasury Department held more than 400 auctions of bills, notes, and bonds to borrow $1.9 trillion for government operations and refinance $9.1 trillion of maturing debt.
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The United States has surpassed $40 trillion in national debt, marking another record for the federal government and prompting renewed criticism from Congressman Andy Biggs (R-AZ-05) over Washington’s continued spending and borrowing.
According to the Joint Economic Committee’s Debt Monitor, the national debt has increased by approximately $90,257.73 every second over the past year. That amounts to roughly $5.42 million per minute, $324.93 million per hour, and $7.8 billion per day.
The national debt crossed the $40 trillion threshold on August 18, 2026, according to U.S. Treasury data.
The milestone came less than five months after the national debt surpassed $39 trillion in March, highlighting the accelerating pace at which the federal government is adding to its debt burden.
The Treasury Department also reported a federal budget deficit of more than $432 billion in July, adding to concerns about the government’s fiscal trajectory.
Biggs, the Republican candidate for Arizona Governor, said the latest debt milestone demonstrates what he characterized as decades of congressional unwillingness to impose meaningful limits on federal spending.
“It was fitting that America reached this grim debt milestone while legislators were absent from our nation’s capital,” stated Congressman Biggs.“For decades, Members of Congress have shown catastrophic unseriousness about reining in government spending and leaving a better future for the next generation.”
“Regardless of which party controls Congress, I have sounded the alarm on this fiscal cliff since I entered the U.S. House of Representatives and have introduced legislation to help solve this crisis,” added Biggs. “Our children and grandchildren will be forced to suffer the immense consequences of this inaction and fear of making tough decisions. No one should be surprised when that time arrives for our great nation.”
The $40 trillion milestone represents a doubling of the nation’s debt in less than a decade. Treasury data shows that approximately $32.3 trillion is held by the public, while another $7.8 trillion consists of intergovernmental holdings.
Biggs has repeatedly made federal spending and the national debt a central focus of his legislative work in Congress. His office points to several measures he has introduced aimed at addressing the nation’s long-term fiscal problems.
Among them is a proposed constitutional amendment, H. J. Res. 139, that would require the federal government to operate under a balanced budget by permanently prohibiting deficit spending. The proposal would also establish a two-thirds supermajority requirement for any legislation creating a new federal tax.
Biggs has also introduced, H. Res. 631, a resolution formally recognizing America’s debt as a threat to national security, as well as hundreds of bills aimed at reducing non defense discretionary spending.
The latest debt milestone comes as the federal government continues to run deficits approaching $2 trillion annually. The Congressional Budget Office has projected that federal revenues in FY26 will total roughly $5.6 trillion, compared with approximately $7.4 trillion in federal spending.
The rapid increase in federal debt has also raised concerns over the growing cost of servicing that debt. Interest payments have climbed to more than $1 trillion annually, adding another significant expense to the federal budget.
For Biggs, the latest milestone represents another warning that Congress will eventually have to confront the consequences of continued deficit spending.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
The federal government ran a $432.308 billion deficit in July, marking the largest monthly deficit since March 2021, according to the Joint Economic Committee’s latest Monthly Fiscal Update.
The July deficit brought the federal government’s total deficit for the fiscal year through July to $1.799 trillion. The figure is 10.46% higher than the $1.629 trillion deficit recorded during the comparable period in FY25.
The federal government has spent $1.40 for every $1 it has collected in revenue so far in FY26, with 28.62% of total outlays not covered by federal receipts.
For comparison, the federal government recorded a total deficit of $1.775 trillion during fiscal year 2025.
In July, the Fed gov ran a deficit of $432.308B, the largest monthly deficit since March 2021. FY2026-July, deficits were $1.799T. This means 28.62% of outlays in FY2026 were not paid for by revenues & for every dollar the Fed gov received in revenue, it spent $1.40.…
— Joint Economic Committee Republicans (@JECRepublicans) August 13, 2026
The Congressional Budget Office’s (CBO) most recent 10-year budget projections estimate that the federal deficit will reach $1.853 trillion in FY26, followed by $1.887 trillion in FY27 and $2.080 trillion in FY28.
Federal net outlays totaled $766.318 billion in July, bringing total net outlays for the fiscal year through July to $6.284 trillion.
That represents a 5.17% increase compared to the $5.975 trillion in net outlays recorded during the same period in FY25. Total federal outlays reached $7.010 trillion during FY25.
The largest categories of federal spending so far in FY26 have been Social Security, Medicare, income security and veterans benefits, net interest on the national debt, defense, and Medicaid.
Social security accounted for $1.384 trillion in spending through July, or approximately 22% of all federal outlays. Medicare accounted for $954.52 billion, or 15.2%.
Income security and veterans benefits accounted for another $968.31 billion (15.4%), while net interest on the federal debt totaled $931.36 billion (14.8%).
Defense spending totaled $764.71 billion through July, representing 12.2% of federal outlays, while Medicaid spending reached $598.21 billion (9.5%).
In July alone, Medicare accounted for $174.25 billion in federal spending, followed by Social Security at $140.68 billion, income security and veterans benefits at $119.28 billion, net interest at $104.15 billion, defense at $86.05 billion, and Medicaid at $58.30 billion.
The CBO currently projects total federal net outlays of $7.449 trillion for FY26, increasing to $7.772 trillion in FY27 and $8.151 trillion in FY28.
Federal spending has continued to exceed revenue despite receipts also increasing compared to the same period last fiscal year.
The federal government collected $334.010 billion in net receipts during July. For the fiscal year through July, total net receipts reached $4.485 trillion.
That is a 3.19% increase from the $4.437 trillion collected during the comparable period in FY25. Total federal receipts reached $5.235 trillion durning FY25.
Individual income taxes remain the largest source of federal revenue, generating $2.369 trillion through July, or 52.8% of all federal receipts.
Social insurance and retirement taxes generated another $1.523 trillion, accounting for 33.9% of receipts.
Corporation income taxes have generated $292.91 billion so far in FY26, representing 6.5% of total receipts. Customs duties have brought in $154.47 billion (3.4%), while all other receipts accounted for $146.22 billion (3.3%).
In July, individual income taxes generated $173.27 billion, while social insurance and retirement taxes generated $139.07 billion. Corporation income taxes generated $13.57 billion during the month.
Customs duties recorded a negative $8.55 billion in July, compared with $135.69 billion collected during the comparable period of FY25. Despite the July figure, customs duties have generated $154.47 billion for the fiscal year to date.
The CBO projects federal receipts will total $5.596 trillion in FY26, $5.885 trillion in FY27 and $6.071 trillion in FY28.
While federal receipts have increased 3.19% compared with the same point in FY25, net outlays have increased by 5.17%
The difference between federal spending and revenue has contributed to the $1.799 trillion deficit accumulated through July.
The federal government’s fiscal year ends September 30, meaning the July figures cover 10 months of FY26.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
The Joint Economic Committee released its Monthly Inflation Update for July 2026, showing that consumer prices continued to rise, while real earnings remained mostly steady during the month.
According to the report, the headline Consumer Price Index for All Urban Consumers (CPI-U) increased 0.07% from June to July and rose 3.36% over the previous year.
Core CPI, which excludes food and energy prices, increased 0.22% in July and was up 2.48% from July 2025.
Energy prices declined 1.48% in July but remained significantly higher than a year earlier, with energy price inflation increasing 14.73% over the past 12 months. Food prices increased 0.08% during July and were up 2.98% compared with July 2025.
CPI-U increased 0.07% in July & rose to 3.36% over the past year. Core CPI increased 0.22% & rose to 2.48% over the past year. Energy price inflation was down by 1.48% in July & was up 14.73% over the past year. Food price inflation rose 0.08% & was up 2.98% over the past year.…
— Joint Economic Committee Republicans (@JECRepublicans) August 12, 2026
Inflation also varied across the country. Annual headline CPI inflation was highest in the Northeast at 4.1%, followed by the Midwest at 3.5%. The South recorded annual inflation of 3.2%, while the West had the lowest rate among the four regions at 3.0%.
The inflation report comes less than a week after a disappointing jobs report that showed the U.S. economy unexpectedly lost 23,000 jobs in July. Economists had expected employers to add jobs during the month.
The Bureau of Labor Statistics also sharply revised employment gains for May and June downward by a combined 103,000 jobs, providing a weaker picture of the labor market than previously reported.
The July employment report also showed an unemployment rate of 4.1%, down slightly from June. However, the decline was accompanied by a reduction in labor-force participation, while employment fell in areas including local government, education, and retail trade sectors. Healthcare continued to trend upward.
The combination of persistent inflation and signs of a weakening labor market leaves the Federal Reserve facing a difficult balancing act as it considers its next interest-rate decision.
The Federal Reserve previously voted 9-3 to maintain the benchmark interest rate, and the latest inflation and employment data could further reduce pressure on the central bank to raise rates at its September meeting.
While inflation remains above the Fed’s 2% target, the weaker-than-expected jobs numbers and downward revisions to previous employment gains could give policymakers additional reason to exercise caution.
The Federal Reserve will receive another round of inflation and employment data before its September meeting, giving policymakers a final set of economic data to consider as they weigh continued price pressures against growing signs of a cooling labor market.
The July report also examined changes in workers’ real earnings, which account for the effects of inflation. For all employees on private, non-farm payrolls, real average weekly earnings decreased 0.02% from June to July, while real average hourly earnings declined 0.09%.
Among production and nonsupervisory employees on private non-farm payrolls, real average weekly earnings increased 0.06% during the month. Real average hourly earnings for the group remained unchanged, with a net change of 0.00%.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
