US employment data pointed to a labour market running well ahead of forecasts in August, while interest-rate futures shifted towards a higher chance of a Federal Reserve increase. Nonfarm payrolls rose by 162,000, the strongest monthly gain since March, the US Department of Labor’s Bureau of Labor Statistics said.
Economists had forecast a gain of 53,000 jobs. Reuters had forecast 56,000 and Bloomberg 55,000. The result was roughly three times the consensus estimate and came after combined revisions for June and July lifted employment by 55,000 more jobs than previously reported. June payrolls were revised up by 11,000 and July by 44,000.
The unemployment rate was unchanged at 4.1 percent. The labour force participation rate edged up to 61.6 percent in August, an increase of 0.2 percentage points. The number of people working part time for economic reasons fell by 414,000 to 4.4 million.
Food services and drinking places led the employment gains, adding 59,000 positions in August. Local government education added 42,000 jobs, construction added 22,000 and manufacturing added 16,000.
Some industries cut jobs. The information industry shed 23,000 positions, while financial activities employment fell by 12,000.
The sector figures followed a year in which job growth has been modest on average. Over the past 12 months, total nonfarm employment has grown by 603,000, while the average monthly gain over the same period was 31,000. Food services and drinking places had averaged gains of 12,000 jobs a month over 12 months. Health care had averaged 32,000 jobs a month.
Wage growth remained positive. Average hourly earnings for private nonfarm payroll employees rose 10 cents to $37.75 in August. Earnings increased 0.3 percent during the month and were up 3.1 percent over the past year.
Other labour-market measures had also shown some strength before the August report. Job openings stood at 7.3 million in July, up from 7.2 million the previous month. Total separations were 5.1 million in July.
Rate futures reflected the stronger payroll figure. CME Group’s FedWatch showed a 60 percent chance of a 25 basis point rate increase to 3.75–4.00 percent, up from 49 percent on Thursday. The jobs data provides a stronger recent signal on hiring than the forecast range had suggested, though the report does not establish whether August’s gain reflects a lasting acceleration or temporary factors.
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