The U.S. job market rebounded last month, after sluggish hiring in July. Employers added 162,000 jobs in August, while the unemployment rate held steady at 4.1%.
Last month’s job gains were somewhat stronger than forecasters had expected, and the employment tallies for June and July were revised up by a total of 55,000 jobs. Hiring in August was concentrated in healthcare and hospitality. Factories and construction companies also added workers.
Average wages in August were up 3.1% from a year ago, a smaller annual wage gain than the previous month. In recent months, wage growth has not kept pace with rising prices, and workers have seen a real erosion in their purchasing power.
With the job market looking to be on solid ground, the Federal Reserve can focus its attention on next week’s inflation report, as it decides whether to raise interest rates later this month. After the jobs report, investors raised the likelihood of a September rate hike to about 60%.
An NPR editor adapted these audio reports by Scott Horsley.