US Economy Surprises with Strong Jobs Report
The US economy added a surprisingly strong 162,000 jobs in August, far surpassing forecasters' expectations and marking a rebound after a revised 21,000 jobs were added in July. The Labor Department's estimate for August employment was significantly higher than the estimated 23,000 job losses previously reported. The unemployment rate remained unchanged at 4.1% in August.
Average hourly earnings for employees on private, nonfarm payrolls rose by 10 cents to $37.75 in August, a 3.1% increase over the year. The upcoming inflation report due out September 11 will reveal whether paychecks kept up with inflation in August. Fed officials will review the new employment numbers and the inflation report as they prepare for their next interest rate decision on September 16.
According to LinkedIn's head of economics, Kory Kantenga, the data point to a stable labor market, not an accelerating one. The strong gains in Leisure and Hospitality and Government are a rebound from earlier summer weakness, not a shift in trend.