U.S. labor market booms, with 162,000 jobs added in August
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U.S. employers added 162,000 jobs in August, while the unemployment rate held steady at 4.1%, the Labor Department said on Friday.
Why it matters: The better-than-expected report is fresh evidence of the labor market's resilience, easing fears that a hiring slowdown had taken hold.
By the numbers: Job gains were more than triple the 53,000 jobs that economists anticipated.
- Revisions released Friday showed employers added 55,000 more jobs in June and July combined than previously estimated. With those revisions, the job declines initially estimated last month flipped to a gain.
- Local government education added 42,000 jobs last month, largely reversing the losses seen the prior month. Restaurants and bars also added notable job gains in August.
- The labor force participation rate, the share of Americans working or looking for work, rose to 61.6%, reversing some of its recent decline.
The big picture: The data comes as Federal Reserve officials consider whether to raise interest rates later this month, with stubborn inflation now their chief concern.
- Federal Reserve chairman Kevin Warsh said last week that low job gains were natural with labor supply barely growing and described the economy as consistent with full employment.
- "The Fed's predominant focus right now should be on prices," Warsh said.
- Fed governor Christopher Waller reinforced that view Thursday, describing the labor market as "stable" and employment as near its maximum sustainable level — conditions he said should leave it playing little role in the path of rates.
The bottom line: A labor market that looked shaky just a month ago now appears on much firmer footing.
Editor's note: This story has been updated with additional details.
