U.S. non-farm payrolls increased by 162,000 in August, with the unemployment rate remaining at 4.1%

The United States saw stronger-than-expected job growth in August, with the unemployment rate remaining unchanged, indicating that the momentum in the U.S. labor market may be stronger than previously believed. According to data released by the U.S. Bureau of Labor Statistics on Friday, after revisions to the previous two months' employment figures, nonfarm payrolls increased by 162,000 in August, exceeding all economists' expectations. Nonfarm employment growth was mainly driven by a rebound in leisure and hospitality jobs and an increase in government sector employment. At the same time, the construction and manufacturing industries also recorded robust job growth. The unemployment rate held steady at 4.1%. This report demonstrates that the U.S. labor market is withstanding the uncertainties brought by the Iran war and inflationary pressures. Federal Reserve officials may view this report as evidence to support rate hikes; however, the U.S. CPI data to be released next week will be key for the Federal Reserve's interest rate decision later this month.