U.S. payrolls rose 162,000 in August, much more than expected; unemployment rate at 4.1%

The U.S. economy added jobs at a brisk pace in August, reversing a summer slowdown in hiring, while the unemployment rate held steady.

Nonfarm payrolls rose a seasonally adjusted 162,000 for the month while the unemployment rate, as expected, held steady at 4.1%, the Bureau of Labor Statistics reported Friday. Economists surveyed by Dow Jones had been looking for a payrolls increase of 53,000.

August’s total was the strongest monthly gain since March.

The report was consistent with what Federal Reserve officials have called a stable labor market, and likely turns the central bank’s focus to next week’s inflation numbers as the final determinant heading into the interest rate decision in less than two weeks.

Policymakers generally watch the unemployment rate more closely for the health of the labor market, and that has held consistent for the past several years and is actually down 0.2 percentage point from a year ago.

In addition to the solid August gain, prior months saw upward revisions: July showed a gain of 21,000 jobs, swinging positive from a loss of 23,000, while June was revised up to a gain of 31,000, or an increase of 11,000.

Unlike previous months, job gains were fairly broad-based.

Restaurants and bars led with 59,000 new jobs, while government education rose by 42,000 and manufacturing contributed 16,000. Health care, the primary engine of job growth, saw a gain of just 13,000, compared to the monthly average of 32,000 over the prior 12 months.

There was some evidence of artificial intelligence hitting employment rolls: Information-related industries reported a loss of 23,000, putting the 12-month average at a loss of 8,000.

This is breaking news. Please refresh for updates.