U.S. added 162,000 jobs in August, wage growth lags inflation

U.S. added 162,000 jobs in August, while wage growth continued to lag inflation

The U.S. economy in August added 162,000 jobs, far more than expected. The unemployment rate remained unchanged at 4.1%.

Economists surveyed by Dow Jones had expected overall hiring of just 53,000 roles and a steady unemployment rate.

Meanwhile, employment for June was revised up by 11,000 roles to a total addition of 31,000. July, which had previously been recorded as a negative 23,000, was revised up sharply by 44,000 to a total net job additions of 21,000.

The lag between wages and inflation comes at a difficult time for consumers, especially those in lower income tiers.David Ryder / Bloomberg via Getty Images fileTaken together, the strong August number and the upwardly-revised June and July numbers will likely give economists significant added confidence in the stability of the labor market.

“August’s blowout jobs report provided evidence of a stable labor market heading into the fall, supporting resilient consumer spending but also raising market expectations for a near-term Fed rate hike amid unacceptably high inflation,” Wells Fargo’s Jennifer Timmerman said.