According to the monthly report from Bureau of Labor Statistics private sector establishments added 103,000 jobs last month, and overall non-farm payroll employment rose by 96,000.
With this the economy has now added private sector jobs for 30 straight months, for a total of 4.6 million jobs during that period. The household survey also showed that the unemployment rate declined from 8.3 per cent to 8.1 per cent in August, the report said.
"While there is more work that remains to be done, today's employment report provides further evidence that the US economy is continuing to recover from the worst downturn since the Great Depression," said Alan B Krueger, Chairman of the Council of Economic Advisers, the White House.
"It is critical that we continue the policies that are building an economy that works for the middle class as we dig our way out of the deep hole that was caused by the severe recession that began in December 2007," Krueger said.
Following the report, Mitt Romney, the Republican presidential candidate, lashed out at Obama Administration.
"If last night was the party, this morning is the hangover. For every net new job created, nearly four Americans gave up looking for work entirely," he said in a statement.
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This is more of the same for middle class families who are suffering through the worst economic recovery since the Great Depression, he said.
"After 43 straight months of unemployment above eight percent, it is clear that President Obama just hasn't lived up to his promises and his policies haven't worked," he said, adding that the Americans are not better off than they were four years ago.
But the Democratic leadership termed the jobs report as an encouraging sign with the drop in the unemployment rate.
Democratic Leader Nancy Pelosi said with private businesses adding 103,000 jobs, this marks the 30th month of private sector job growth with 4.6 million private sector jobs created.