US Job Market Surges in Unexpected Boom Ahead of Midterms
The US job market showed an unexpected surge in August, adding 162,000 jobs to the nonfarm payrolls. This was far higher than the predicted 65,000 jobs, according to a FactSet poll.
The Labor Department also revised previous months' numbers, increasing June and July's payrolls by 55,000 each. Restaurants and bars added 59,000 jobs in August, construction companies created 22,000, and manufacturers added 16,000.
This is the fourth consecutive month of job growth above forecasts, with employers adding an average of over 80,000 jobs per month so far this year, compared to just 9,700 last year. However, hiring remains below pre-pandemic levels, averaging around 166,000 monthly jobs in 2023 and 2024.
The labor force grew by 683,000 in August after falling in June and July. Average hourly wages rose 3.1% from a year earlier, the weakest increase since May 2021.