August Jobs Report Exceeds Expectations, Boosting Rate Hike Bets

The US Labor Department's employment report for August showed a strong rebound in job growth, defying expectations. Nonfarm payrolls surged by 162,000 jobs last month, the largest gain in five months.

This was significantly higher than the 56,000 jobs economists polled by Reuters had forecast after a previously reported drop of 23,000 in July. June payrolls were revised up to 20,000.

Leisure and hospitality employment surged 62,000 last month, with payrolls at restaurants and bars increasing by 59,000 jobs. Local government education added 42,000 jobs, erasing a decrease in the prior month.

The unemployment rate remained steady at 4.1%, despite the labor force increasing by 683,000. Financial markets boosted rate hike bets at the US central bank's September meeting.