The U.S. economy added a surprising 162,000 jobs in August, the Labor Department estimated Sept. 4, even as economists said a "low-hire, low-fire" dynamic continued to make it difficult for unemployed Americans to find work.
The 162,000 estimate for August far surpassed forecasters’ expectations and marked a rebound after U.S. employers added a now-revised 21,000 jobs in July. Last month, the department estimated U.S. employers shed 23,000 jobs in July. Payroll gains for June were also revised higher, reflecting a stronger summer job market than previously thought.
The unemployment rate stayed put at 4.1% in August after falling in June and July when hundreds of thousands of Americans stopped looking for work. The labor force participation rate ticked
up to 61.6% in August after falling to 61.4% the month before.
“There are always areas of concern in the labor market. For example, among recent graduates,” Federal Reserve Chair Kevin Warsh said Aug. 28. “In general, though, people who want to work, by and large, are holding or finding jobs. They may well be concerned about future labor disruptions, but as of now, I believe the labor markets are broadly consistent with full employment.”
Average hourly earnings for employees on private, nonfarm payrolls rose by 10 cents to $37.75 in August, the department said. They increased 3.1% over the year. The department’s next inflation report due out Sept. 11 will reveal whether paychecks kept up with inflation in August. They did not in July.
Fed officials will review the new employment numbers for August and the upcoming inflation report as they prepare for their next interest rate decision on Sept. 16. Several policymakers have signaled they may support a rate hike if the report shows inflation is not on a path back to the central bank’s 2% annual target.
See the jobs data
U.S. employers added 162,000 jobs in August, the highest monthly total since March this year.
The unemployment rate remained unchanged at 4.1%.
(This is a developing story and will be updated to add new information.)
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This article originally appeared on USA TODAY: August jobs report shows US added 162,000 jobs, above expectations
