US Economy Adds 162,000 Jobs, Wage Growth Stalls

The US economy added 162,000 jobs in August, exceeding expectations of just 53,000 roles. The unemployment rate remained at 4.1%. Economists surveyed by Dow Jones had predicted a steady unemployment rate.

August's strong number and the upwardly-revised June and July numbers give economists confidence about the labor market's stability. Jennifer Timmerman from Wells Fargo said, 'August's blowout jobs report provided evidence of a stable labor market heading into the fall, supporting resilient consumer spending but also raising market expectations for a near-term Fed rate hike amid unacceptably high inflation.'

However, wage growth remains a concern, with a year-over-year increase of 3.1% in August, unchanged from July. Timmerman called this 'the fly in the ointment' and noted that real wages remain vulnerable due to rising oil prices.