US Economy Adds 162,000 Jobs in August, Wage Growth Outpaces 3% Target

The US economy added more jobs in August than its recent monthly average, providing some welcome relief from economic anxiety. According to the Bureau of Labor Statistics, nonfarm payroll employment rose by 162,000 in August, far surpassing the sluggish average monthly gain of just 31,000 over the past year.

The unemployment rate remained steady at 4.1%, leaving around 7 million Americans out of work. The sectors that led the way were restaurants and bars, which added 59,000 positions, as well as local government education, with an additional 42,000 jobs. Manufacturing continued its quiet upward trend, adding 16,000 new positions.

Average hourly earnings for private sector workers rose by 10 cents in August to $37.75, a gain of 0.3% for the month and 3.1% over the past year. The average workweek also ticked up slightly to 34.4 hours. This wage growth is particularly meaningful in the context of consumer prices climbing due to higher fuel costs tied to ongoing regional conflicts.