U.S. Adds 162,000 Jobs As Fed Rate-Hike Odds Rise
By CU Today Staff —
WASHINGTON—U.S. employers added 162,000 jobs in August, nearly tripling economists’ expectations, while the unemployment rate remained at 4.1%, according to the Bureau of Labor Statistics. Economists surveyed by Reuters had projected a gain of 56,000.
The labor-force participation rate increased to 61.6% as the labor force grew by 683,000. Average hourly earnings rose 0.3% during the month to $37.75 and were up 3.1% from a year earlier. The number of people working part time for economic reasons fell by 414,000 to 4.4 million.
Restaurants and bars added 59,000 jobs, while local government education gained 42,000. Manufacturing added 16,000 positions and healthcare gained 13,000, while the information sector lost 23,000 jobs. June and July employment was revised upward by a combined 55,000 jobs.
The stronger-than-expected report increased the likelihood that the Federal Reserve will raise interest rates at its Sept. 15-16 meeting. Rate futures indicated about a 62% chance of an increase, up from roughly 55% before the report, while Treasury yields and the dollar rose, Reuters reported. Inflation reports due next week are expected to remain central to the Fed’s decision.
"Employers added more jobs than anticipated in August, and upward revisions to the prior two months lift the three-month average to a healthier pace than the summer numbers had suggested," commented America's Credit Unions Senior Economist Dawit Kebede. "A strong job report strengthens the case for a September rate increase, especially if next week’s CPI reading does not show clear signs of cooling. For Credit unions, that means continued pressure on funding costs, but also a labor market that is supporting members’ ability to keep up with their obligations."
Originally reported by CU Today.