US Economy Adds 162,000 Jobs in August, Unemployment Holds Steady at 4.1%

The United States economy added 162,000 jobs in August, exceeding economists' forecasts. The unemployment rate remained unchanged at 4.1 percent.

Forecasters polled by FactSet had expected employers to add 65,000 jobs, while other economists anticipated 53,000 or 55,000 new positions. The Labor Department also revised job gains for prior months. June's figure increased from 20,000 to 31,000, and July's initial loss of 23,000 jobs was revised to a gain of 21,000. These revisions collectively added 55,000 jobs to the previously reported totals.

Private employers accounted for 127,000 of the August job gains, more than double the 53,000 forecast for the private sector. July's private-sector gain was also revised from 30,000 to 71,000. Job growth occurred across several sectors. Education added 42,000 jobs, while the food and beverage industry increased by 59,000 positions. Manufacturing employment rose by 16,000 in August, following gains of 13,000 in June and 14,000 in July.

Construction jobs increased by 22,000, and healthcare added 13,000 jobs. Average hourly earnings rose by 10 cents, a 0.3 percent increase for the month. The year-to-year increase in hourly earnings stands at 3.1 percent. Prices have risen 3.4 percent over the year. The employment-to-population ratio increased to 59.1 percent from 58.9 percent. National Economic Council Director Kevin Hassett described the August jobs report as a blockbuster number, attributing the strength to capital spending, tariffs, and tax changes. The strong hiring figures have prompted discussion about the Federal Reserve potentially raising interest rates next month.