US Jobs Surge in August as Rate Hike Bets Rise

The US economy added 162,000 jobs in August, significantly exceeding market expectations and strengthening speculation that the Federal Reserve could raise interest rates at its upcoming policy meeting.

The unemployment rate was unchanged, according to the latest monthly employment report from the US Department of Labor's Bureau of Labor Statistics.

The increase was far stronger than economists had anticipated. The US economy had shed 23,000 jobs in July.

Much of August's employment growth came from local government education, which added nearly 42,000 positions as schools across the country prepared for the new academic year. Employment in the sector typically falls during the summer when schools are closed and teachers are removed from payrolls.

The food services industry recorded an even larger increase, adding 59,000 jobs during the month.

Construction employment rose by 22,000, while healthcare added 12,000 positions.

However, several sectors recorded losses. Employment in the information industry fell by 23,000, with layoffs reported at companies including Scripps TV and Zillow. The sector covers industries such as telecommunications, broadcasting, publishing, web hosting and data processing.

Financial activities employment also declined, falling by 12,000 jobs across areas including banking, insurance and real estate.

Mixed signals from employment data

The stronger-than-expected government figures contrasted sharply with private-sector employment data released by ADP, which showed US companies added just 38,000 jobs during August.

Another Labor Department report, the Job Openings and Labor Turnover Survey, provided a somewhat stronger picture of labour demand. Job openings edged up to 7.3 million in July from 7.2 million in June, while total separations declined to 5.1 million from 5.3 million.

The latest employment figures come just weeks before the Federal Reserve's next policy meeting, where officials will decide whether to adjust interest rates.

The stronger jobs numbers prompted markets to increase expectations of a rate rise.

US President Donald Trump responded to the report by again urging the Federal Reserve to lower borrowing costs.

"Lower the interest rates because the U.S.A. is a much stronger credit than it was a short time ago!" Trump wrote on Truth Social.

The president also renewed threats to restrict trade with countries running trade surpluses with the United States if the Federal Reserve fails to reduce interest rates.

Canadian jobs fall

Canada reported a contrasting employment picture, with the economy losing 41,700 jobs in August. The unemployment rate nevertheless remained unchanged at 6.4 percent, according to Statistics Canada.