Hiring rebounds sharply as unemployment holds at 4.1%, strengthening the case for continued U.S. economic resilience
by Emmitt Barry, Worthy News Washington D.C. Bureau Chief
WASHINGTON, D.C. (Worthy News) – The U.S. economy added 162,000 jobs in August, dramatically exceeding economists’ forecasts and delivering the strongest sign in months that the American labor market remains resilient. The unemployment rate held steady at 4.1%.
Food services and drinking establishments led the gain, adding 59,000 jobs, while local government education added another 42,000 as schools prepared for the new academic year. Average hourly earnings rose 0.3% during the month and were up 3.1% from a year earlier.
The report also substantially improved the picture from earlier this summer. June payroll growth was revised upward from 20,000 to 31,000, while July was revised from a previously reported loss of 23,000 jobs to a gain of 21,000. Combined, the two months were revised upward by 55,000 jobs.
The unexpectedly strong numbers provide a significant economic boost for the Trump administration, which hailed the report as evidence that its economic policies are gaining traction. But the strength also complicates the Federal Reserve’s next move: with inflation still elevated, the resilient labor market could give policymakers greater room to keep rates high—or raise them further—to contain price pressures.
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