Job growth surges; Unemployment steady.  U.S. employers added 162K jobs last month and July’s job losses were revised away suggesting the labor market may have more momentum than indicated by last month’s report.  The unemployment rate was steady at 4.1% – the lowest level since June 2025 – as overall dynamics still point to a relative balance between supply and demand for labor.  While one month does not a trend make, today’s report is an indication that the labor market is powering through uncertainty from the Iran war and inflationary pressures.  All else equal, today’s data likely lends support to the argument for near-term rate increases though policymakers will also have the benefit of next week’s reading of the Consumer Price Index (CPI; inflation data) ahead of the September Fed meeting.

• 162K Jobs added in August.  The U.S. labor market added 162k jobs in August after adding just 21K in July (revised favorably from -23K originally reported).  Economists were anticipating +55K job gains for the month.  Year-to-date, U.S. employers have added about 80K jobs per month, up from just 10K per month in 2025 and compared to expectations for about 70K per month when the year began.  August job gains were well above an average monthly gain of +31K over the prior 12 months.  According to the report, employment in leisure and hospitality rose by 59K for the month while local government education added 42K jobs largely offsetting a meaningful decline in July.  Employment rose modestly in manufacturing (+16K) and health care (+13K) while information industry employment declined (-23K).
• Unemployment steady at 4.1%.  The U.S. unemployment rate registered 4.1% in August, unchanged from a month earlier and in line with expectations for the same.  The labor force participation rate fell to 61.6% from 61.4% in July.