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US economy adds 162,000 jobs in August, topping forecasts

financeSep 4, 202626603

U.S. employers added 162,000 nonfarm payrolls in August, more than double the FactSet forecast of 65,000 and a sharp acceleration from July. The unemployment rate held at 4.1 percent while the labor force rose by 683,000. Job gains were concentrated in food services and bars (+59,000) and local government education (+42,000). The Labor Department revised June and July payrolls up by a combined 55,000, and August payroll gains were more than five times the 12-month average of 31,000. Average hourly earnings rose 3.1 percent year over year, the weakest pace since May 2021, prompting Elise Gould of the Economic Policy Institute to say workers lack leverage to push wages higher. Economists and strategists including Ellen Zentner of Morgan Stanley said the stronger payrolls could strengthen the case for a Federal Reserve rate hike at the Sept. 16 meeting, though next week’s Consumer Price Index on Sept. 11 will weigh heavily; CME Group’s FedWatch tool showed about a 60 percent chance of a September hike. Two-year Treasury yields jumped to their highest level since January 2025 after the report boosted expectations of Fed tightening.

Mohamed A. El-Erian
@elerianm.bsky.social

The latest US jobs report came in significantly stronger than expected across both sides of the labor market: demand and supply. Specifically: Job Creation: Nonfarm payrolls surged from an upwardly revised 21,000 to ... 1 of 3

122h ago
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