Women accounted for almost all of job gains in August. Here's why

The U.S. labor market saw a dramatic shift in August, with women accounting for nearly all the job growth. According to the Bureau of Labor Statistics, 158,000 of the 162,000 new jobs added last month were held by women, or roughly 98% of the total increase. Men, by contrast, gained only about 4,000 positions. Heather Long, chief economist at Navy Federal Credit Union, cautioned against overemphasizing the gender split, stating it's "noisy" and can fluctuate month to month.

However, the disparity signals a deeper transformation in the American workforce. Women have now overtaken men in total payroll employment for the third time in history, a shift driven by industries like healthcare and hospitality, where women are heavily represented. Additionally, women's higher education attainment positions them well to capitalize on growth in professional sectors.

The surge in jobs for women was largely driven by teachers and servers, with the education sector adding 42,000 jobs and the food service industry contributing 59,000. While wage growth remained stagnant, this robust labor market could prompt the Federal Reserve to raise interest rates in September, a possibility that has increased to 52.6% from 49.4% in recent days.