US Job Growth Surges Past Expectations in August

The US economy added 162,000 jobs in August, far exceeding expectations. This number is nearly triple what economists had predicted, which ranged from 50,000 to 65,000. The unemployment rate held steady at 4.1%, reinforcing the Federal Reserve's view that the labor market remains at or near full employment.

The majority of new jobs came from food services and drinking places, adding 59,000 positions. Local government education followed with 42,000 new jobs, likely due to seasonal hiring patterns as schools staffed up for fall. The information sector, however, shed jobs during the month.

In addition to the strong job growth, the Bureau of Labor Statistics revised June and July figures upward by a combined 55,000 jobs. Annual wage growth came in at 3.1%, a pace that sits comfortably above inflation but not so hot that it would alarm the Fed.