U.S. Employers Add 162,000 Jobs in August

U.S. employers added 162,000 jobs in August, far exceeding forecasts of roughly 53,000 to 65,000 and marking the strongest monthly gain since March, in contrast with ADP’s earlier estimate of 38,000 private-sector jobs. The unemployment rate held at 4.1%, while revisions transformed July’s reported 23,000-job decline into a 21,000-job gain and increased June’s total by 11,000. Hiring was concentrated in leisure and hospitality, especially restaurants and bars, local-government education, construction, manufacturing and health care, while information-sector employment continued to fall. The labor force expanded by 683,000, and a broader measure of unemployment declined to 7.7%, but annual wage growth slowed to 3.1%, its weakest pace in about five years and below inflation. Analysts cautioned that the strong report may represent a rebound from a weak summer rather than a lasting acceleration, as the labor market remains uneven and technology-related jobs decline. The stronger data could support the Federal Reserve’s case for keeping interest rates elevated or considering increases, although upcoming inflation figures will be important to its decision.