US Employers Add 162,000 Jobs in August, Exceeding Forecasts

U.S. employers added 162,000 jobs in August, exceeding economists' forecasts, while the unemployment rate held steady at 4.1%.

Forecasters had expected gains ranging from 50,000 to 65,000 jobs. The Labor Department also revised payroll figures for June and July upward by a combined 55,000 positions. July's initial report of a 23,000-job loss was revised to a 21,000-job gain, and June's increase was adjusted from 20,000 to 31,000. Job growth was in food services and drinking places, which added 59,000 jobs, and local government education, gaining 42,000 positions.

Construction companies added 22,000 jobs, and manufacturing saw a 16,000-job increase. Healthcare added 13,000 jobs, a slower pace than its average. The information industry experienced a decline of 23,000 jobs. The U.S. labor force increased by 683,000 last month, with the participation rate rising to 61.6%. Average hourly wages rose 3.1% from a year earlier, the weakest year-over-year increase since May 2021.

Heather Long, chief economist at Navy Federal Credit Union, stated this wage growth is well below inflation. Inflation has been a primary concern for households, with fuel prices reaching record levels following the U.S. and Iran's attack on Iran in late February. Renewed fighting has caused crude prices to rise again. President Donald Trump welcomed the report, stating on social media, "Great jobs number just announced, breaking all estimates (except mine!) by double and triple - And you haven’t seen anything yet!"

White House Senior Deputy Press Secretary Kush Desai noted the 162,000 jobs added triple economists' expectations. The report could strengthen the case for a Federal Reserve interest rate hike at its September 16 meeting. Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, said an upside surprise in payrolls will likely ramp up concerns about a rate hike. President Trump called for the Fed to lower the interest rates immediately. Diane Swonk, chief economist at KPMG, called the report incredible.