Defying expectations, the U.S. economy added 162,000 jobs in August, marking a major turnaround after two consecutive months of losses, while the national unemployment rate held steady at 4.1%.
The latest report from the Bureau of Labor Statistics released Friday shows that nonfarm payroll significantly expanded at the end of summer, even as most economists expected a far more modest hiring growth in the 53,000 to 65,000 range.
This latest print, coming just days before the September meeting of the Federal Open Market Committee (FOMC), sets the stage for a potential interest rate hike.
Under its dual mandate to promote maximum employment and stable prices, the central bank typically raises rates to curb inflation and lowers them to stimulate hiring.
A hiring boom in food services and drinking places led the way with 59,000 jobs added in August, followed by local government education, which gained 42,000 positions, mostly offsetting July’s decline.
This is a developing story. Please check back for updates.
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Snejana Farberov is a reporter at Realtor.com covering the U.S. housing market and the latest domestic real estate trends. She has worked as a general assignment journalist in New York City and Long Island for 16 years, writing for New York Post, Daily Mail, and News 12. Snejana earned bachelor’s degrees in journalism and Italian from St. John’s University, followed by a master’s degree from Columbia University School of Journalism.
