Key facts
- The US added 162,000 jobs in August, surpassing the 55,000 expected by economists.
- The unemployment rate remained unchanged at 4.1%.
- Average hourly earnings rose 0.3% month-over-month, with year-over-year growth at 3.1%.
- Leisure and hospitality sectors saw significant job gains, while information and financial activities experienced losses.
- US Treasury yields increased following the jobs report, while stock futures showed mixed movement.
The US economy added 162,000 jobs in August, a figure significantly higher than the 55,000 anticipated by economists, according to the Bureau of Labor Statistics. This robust job growth offers relief after a disappointing July report, which was also revised to show a gain. The unemployment rate held steady at 4.1%, with labor force participation seeing a slight increase.
Most major industries experienced job growth, with leisure and hospitality, particularly accommodation and food services, leading the gains. Conversely, the information and financial activities sectors saw job losses. Average hourly earnings increased by 0.3% over the month, and year-over-year wage growth slightly cooled to 3.1%, a figure that will be compared against upcoming inflation data.
Market reactions included a rise in US Treasury yields, with the 10-year yield increasing by 2 basis points to 4.78% and the 2-year yield up 5 basis points to 4.38%. Stock futures showed wavering performance ahead of the market open.
Workplace observers noted the strength of the report, with some suggesting it indicates recent softness was temporary. The data is expected to keep the Federal Reserve's focus on inflation and may provide room for further rate hikes.