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US Economy Adds 162,000 August Jobs as Unemployment Holds Steady
The United States added many more jobs in August than experts expected.
About 162,000 people were added to payrolls.
The unemployment rate stayed at 4.1%, meaning the share of people without jobs did not change.
Earlier estimates for June and July were also revised upward.
Restaurants and food services added the most jobs.
Local government education and manufacturing also hired more workers.
Some areas, such as information jobs, lost workers, so the job market was not strong everywhere.
Pay continued to rise, but more slowly than in some earlier periods.
The report may give the Federal Reserve more flexibility when deciding what to do with interest rates.
The US economy added 162,000 jobs in August, far above economists’ forecast of roughly 53,000.
The unemployment rate stayed at 4.1%, while labor-force participation edged up to 61.6%.
Revisions changed July’s reported 23,000-job loss into a 21,000-job gain and raised June’s gain to 31,000.
Food services, local government education, and manufacturing led August hiring, while information employment fell by 23,000.
Average hourly earnings rose 0.3% to $37.75, with wages up 3.1% from a year earlier.
- Who
- The US economy, workers, employers, the Bureau of Labor Statistics, and Federal Reserve policymakers.
- What
- The economy added 162,000 jobs in August while unemployment remained at 4.1%.
- Where
- The United States.
- When
- The figures were released on Friday; the Federal Open Market Committee is scheduled to meet September 15-16.
- Why
- The report helps assess the strength of the labor market and may influence the Federal Reserve’s interest-rate decision, alongside forthcoming inflation data.
Resilience View
Caution View
Overall labor-market condition
Resilience View
The 162,000-job increase, unchanged 4.1% unemployment rate, and upward revisions for June and July suggest the labor market has remained more resilient than the weak summer data initially indicated.
Caution View
Job growth remains uneven, with information employment declining and several major sectors showing little change, including retail, financial activities, transportation and warehousing, and professional and business services.
Federal Reserve policy
Resilience View
Stronger employment gives the Federal Reserve more flexibility because policymakers are not facing a second consecutive month of reported employment contraction.
Caution View
The report does not resolve the interest-rate question; the Federal Reserve must also consider incoming inflation data, particularly if price pressures remain elevated.
Breadth of hiring
Resilience View
Hiring was spread across food services, local government education, and manufacturing rather than being limited to one industry.
Caution View
Health care, normally a dependable source of job growth, added only 13,000 positions, below its previous-year monthly average of 32,000, highlighting underlying weakness.
Key facts
- August job growth
- 162,000 jobs added
- Forecast
- Economists expected roughly 53,000 jobs to be added
- Unemployment rate
- 4.1%, unchanged from July
- Labor-force participation
- 61.6%, slightly higher than previously
- Largest hiring sector
- Food services and drinking places added 59,000 jobs
- Information-sector change
- Employment fell by 23,000 jobs
- Average hourly earnings
- $37.75, up 10 cents or 0.3% in August
- Annual wage growth
- 3.1% from a year earlier
Sources
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