US job growth rebounds sharply in August, tripling forecasts as unemployment holds at 4.1%

The US economy added 162,000 jobs in August, roughly triple what economists had penciled in and a dramatic reversal from July’s contraction of 23,000. The unemployment rate held steady at 4.1%, reinforcing the Federal Reserve’s view that the labor market remains at or near full employment. Analysts had forecast nonfarm payroll growth somewhere in the range of 50,000 to 65,000. The actual number landed so far above expectations that it felt less like a rebound and more like a correction to a month that may have been an outlier all along. Where the jobs came from Food services and drinking places led the charge, adding 59,000 positions. Local government education followed with 42,000 new jobs, a figure that likely reflects seasonal hiring patterns as schools staffed up for fall. The information sector moved in the opposite direction, shedding jobs during the month. Adding to the upbeat picture, the Bureau of Labor Statistics revised June and July figures upward by a combined 55,000 jobs. Annual wage growth came in at 3.1%, a pace that sits comfortably above inflation but not so hot that it would alarm the Fed. The immigration factor One unusual variable looming over recent jobs data ...