US non-farm payrolls surged by 162,000 in August, far exceeding expectations, while the unemployment rate remained unchanged at 4.1%, according to the Bureau of Labor Statistics.
The figures marked a sharp rebound from July, when employment rose by a revised 21,000. Economists polled by Reuters had expected an increase of about 56,000 jobs after the initially reported fall of 23,000.
The stronger-than-anticipated figures point to continued resilience in the US labour market, despite signs that hiring momentum had weakened earlier in the summer. Employment gains over the past 12 months had averaged 31,000 a month before August’s increase.
Food services and drinking places accounted for 59,000 of the new jobs, while local government education added 42,000. Manufacturing employment increased by 16,000 and healthcare continued to expand, although at a slower pace than its recent average.
The information sector was one of the few areas to record a notable decline, losing 23,000 jobs during the month. The losses included roles in computing infrastructure, data processing, web hosting and related services.
The latest figures also brought substantial upward revisions to previous estimates. June’s increase was revised from 20,000 to 31,000, while July moved from a reported fall of 23,000 to a gain of 21,000, leaving employment in the two months combined 55,000 higher than previously recorded.
Average hourly earnings rose by 10 cents, or 0.3%, to $37.75. Pay was 3.1% higher than a year earlier, while the average working week edged up to 34.4 hours.
The report is likely to influence the Federal Reserve’s decision on interest rates at its meeting on 15 and 16 September. Financial markets had reduced expectations of a rate rise before the data, but the stronger employment figures leave the possibility of an increase under consideration.
