US nonfarm payrolls blow past expectations in August; unemployment rate steady at 4.1%
The US economy added 162,000 nonfarm payroll jobs in August, significantly exceeding market expectations and nearly tripling Wall Street forecasts. The unemployment rate remained steady at 4.1%. Women accounted for almost all of the job gains during this period. This hiring burst has shifted market focus back toward inflation and increased the likelihood of a Federal Reserve interest rate hike. While the S&P 500 and Dow opened lower following the report, the Nasdaq edged up and Treasury yields rose.
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- ✓ US payrolls rose 162,000 in August.
- ✓ The US unemployment rate was 4.1% in August.
- ✓ The August jobs figure exceeded market expectations.
- ✓ Treasury yields increased following the release of the jobs data.
What changed
August nonfarm payrolls rose by 162,000, surpassing forecasts and increasing bets on a September rate hike.
Live updates
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US August Payrolls Surge to 162,000 Jobs with Unemployment Steady at 4.1%
The US economy added 162,000 nonfarm payroll jobs in August, significantly exceeding market expectations and nearly tripling Wall Street forecasts. The unemployment rate remained steady at 4.1%. Women accounted for almost all of the job gains during this period. This hiring burst has shifted market focus back toward inflation and increased the likelihood of a Federal Reserve interest rate hike. While the S&P 500 and Dow opened lower following the report, the Nasdaq edged up and Treasury yields rose.
Why it matters
Strong labor data complicates the Federal Reserve's efforts to control inflation by potentially necessitating higher interest rates. A robust job market reduces the immediate fear of a recession but increases the risk of persistent price growth. The report also indicates a decrease in the unemployment rate for post-9/11 veterans.
What is confirmed
- US payrolls rose 162,000 in August.
- The US unemployment rate was 4.1% in August.
- The August jobs figure exceeded market expectations.
- Treasury yields increased following the release of the jobs data.
Still unconfirmed
- A September rate hike now depends on next week's CPI data.
What to watch next
- Next week's Consumer Price Index (CPI) report
- Federal Reserve decision on the next interest rate hike
confidence 95%Sources used for this update (17)
- Bloomberg.com — US Jobs Report Seen Backing Warsh View of Labor Market
- CNBC — U.S. payrolls rose 162,000 in August, much more than expected; unemployment rate at 4.1%
- MarketWatch — Stock Market Today: S&P 500, Dow open lower but Nasdaq edges up; Treasury yields get a lift as jobs data raises rate hike odds
- Reuters — US nonfarm payrolls surge in August; unemployment rate steady at 4.1%
- Yahoo Finance — US added 162,000 jobs in August as Fed weighs next hike: jobs report
- AP News — Hiring burst of 162,000 jobs in August puts the focus squarely back on inflation in the US
- Military Times — Unexpected hiring surge drives down unemployment rate for post-9/11 veterans
- Barron's — The Stock Market Survived a Strong Jobs Report. Can It Survive Inflation?
- CNBC — Women accounted for almost all of job gains in August. Here's why
- The Christian Science Monitor — Job growth rebounds in August, opening door for Fed to act on inflation
- Bloomberg.com — Wall Street Risk Complex Defies Rate Threat After Jobs Blowout
- Axios — America's jobs scare recedes
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