US Adds 162,000 Jobs in August, Fed Hike Odds Jump

The U.S. economy added 162,000 jobs in August, a figure that significantly surpassed economists' expectations and signaled renewed strength in the labor market. The robust jobs report, released Friday, nearly tripled the consensus forecast of around 53,000 to 56,000 positions. The unemployment rate held steady at 4.1 percent, according to data from the Bureau of Labor Statistics. The August hiring surge marked the largest monthly gain since March and provided a stark contrast to July's initial report, which indicated a loss of 23,000 jobs. Revisions to previous months' data further bolstered the positive outlook, with June and July payroll figures collectively adjusted upward by 55,000 jobs. Several sectors contributed to the strong performance. Food services and drinking places led the gains, adding 59,000 jobs, a substantial increase from their average monthly gain of approximately 12,000 over the preceding year. Local government education also saw a significant rebound, adding 42,000 positions as the academic year began. Manufacturing continued its upward trend, with 16,000 jobs added, contributing to a total gain of about 58,000 positions since a low point in December 2025.