U.S. job growth accelerated sharply in August while the unemployment rate held steady at 4.1%, suggesting an improvement in the labor market after recent struggles and keeping an interest rate hike from the Federal Reserve (Fed) this month on the table.
The jobs report, issued by the Labor Department Friday, could be good news for President Donald Trump two months before midterm elections in which the health of the economy is weighing on voters' minds.
Nonfarm payrolls surged by a surprising 162,000 jobs last month, the data showed. Hiring far exceeded the 65,000 forecasters had expected, according to a poll by FactSet. Labor Department revisions also looked good, adding 55,000 to June and July payrolls. Employers created 21,000 jobs in July; the Labor Department had originally reported that they'd cut 23,000.
Restaurants and bars added 59,000 jobs last month, construction companies 22,000 and manufacturers 16,000. Factory jobs are up by 58,000 since hitting a recent low in December, the Labor Department noted.
So far this year, employers – companies, government agencies and nonprofits – have added an average of more than 80,000 jobs a month. That is up from a dismal 9,700 last year.
