US Labour Market Strengthens as August Jobs Surge Exceeds Expectations

Last week's labour market report in the US showed strong job creation and a rising participation rate, pushing concerns about an AI jobs apocalypse further into the future. The net addition of 162k jobs in August was well above both the median estimate and top-end projections.

This sharp pick-up in hiring suggests that the labour market is not just refusing to cool down, but is actually gaining pace. As a result, there's nothing in the data that would dissuade Fed officials from tightening policy further.

A healthy labour market provides ammunition for the Federal Reserve's hawks, who are pushing for higher interest rates. However, relentless pressure from the Trump administration to keep rates low may sway the FOMC to hold rates steady again.