U.S. Adds 162K Jobs, Triple Forecast — SkimNews
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- U.S. employers added 162,000 jobs in August while unemployment held steady at 4.1%, more than triple the 53,000 jobs economists had anticipated, per the Bureau of Labor Statistics.
- Revisions added a combined 55,000 jobs to June and July estimates, flipping last month's initially reported decline into a net gain.
- Local government education added 42,000 jobs in August, largely reversing prior-month losses, while restaurants and bars also posted notable gains, and the labor force participation rate rose to 61.6%.
- Fed Chair Kevin Warsh said last week that low job gains were natural given barely growing labor supply, described the economy as consistent with full employment, and declared: "The Fed's predominant focus right now should be on prices."
- Fed Governor Christopher Waller reinforced that stance Thursday, calling the labor market "stable" and employment near its maximum sustainable level—conditions he said should leave it playing little role in the path of rates.
- The report landed as Fed officials consider whether to raise interest rates later this month, with stubborn inflation now their chief concern.
- The bottom line: "A labor market that looked shaky just a month ago now appears on much firmer footing," Axios concluded.
Why it matters: The August beat—162,000 jobs versus 53,000 expected—gives the Fed fresh justification to focus on its stated chief concern of inflation over supporting employment. With both Warsh and Waller this week describing the labor market as at or near full employment, the case for rate cuts weakens at exactly the moment inflation is being called the Fed's top focus.
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