AI Data Insight
In Q3 2026 (August), the number of US persons not in the labor force who currently want a job reached 5.79 million, a slight increase of 43,000 from July. Although nonfarm payrolls added 162,000 jobs that month—significantly beating expectations—and the unemployment rate remained flat, the massive potential labor force on the sidelines indicates that the market's supply side remains abundant. Looking ahead, it is important to monitor the short-term volatility in the unemployment rate that could be triggered by these sidelined individuals returning to the workforce as the economy cools.