August unemployment reached its highest level since February 2022, but this increase may not be detrimental to the US labor market.

The tight labor market allows for more supply, and new entrants may take time to fit in.

Civil labor force participation increased by 736,000, reaching 62.8%, the highest level since February 2020.

The August jobs report suggests a better balance between supply and demand for workers, which would be beneficial for the Federal Reserve.

The August small business jobs report found 40% of 611 owners had unfilled job opportunities, and the Job Opening and Labor Turnover Survey showed workers resigning at the lowest rate since January 2021, indicating a preference for job security over job security.