U.S. Job Growth Surges in August, Adding 162,000 Payrolls

The U.S. Bureau of Labor Statistics reports that nonfarm payroll employment increased by 162,000 in August, well above the average monthly gain of 31,000 over the previous year, while the unemployment rate remained at 4.1%. Job gains were concentrated in food services and drinking places, which added 59,000 jobs, and local government education, which added 42,000. Manufacturing also continued to strengthen, adding 16,000 jobs, while health care added 13,000. The information industry lost 23,000 jobs.

The labor force participation rate edged up to 61.6%, while the number of unemployed remained little changed at 7.0 million. Long-term unemployment stood at 1.9 million, representing 27% of all unemployed workers. Average hourly earnings rose 0.3% to $37.75, up 3.1% from a year earlier. The report also showed stronger prior-month employment growth, with June and July payrolls revised upward by a combined 55,000 jobs.