U.S. employers added 162,000 jobs in August, exceeding forecasts, while the unemployment rate remained at 4.1%, according to federal labor data reported by The Associated Press. Payroll estimates for June and July were also revised higher.
Job gains were spread across several industries, including restaurants, construction and manufacturing. Average hourly earnings were up 3.1% from a year earlier, a pace that remains important to the Federal Reserve's inflation outlook.
The stronger labor report reduced concerns about an abrupt slowdown in hiring, but it also increased focus on price pressures. Policymakers are balancing a resilient labor market against inflation that remains above the central bank's target.