The American job market bounced back last month. Employers added 162,000 jobs in August, the Bureau of Labor Statistics reported Friday, outpacing forecasts of a 65,000 gain.
The unemployment rate held at 4.1 percent, while the labor market showed signs of improvement. Labor force participation edged up two-tenths of a point to 61.6 percent, though it remained down five-tenths of a point since January. The employment-to-population ratio rose slightly to 59.1 percent.
Private employers added 127,000 jobs, while government payrolls grew by 35,000. Food services and drinking places added 59,000 jobs, local government education added 42,000, and manufacturing gained 16,000. Information employment fell by 23,000, while health care continued growing but at a slower pace than its recent average.
Revisions made the picture stronger. BLS marked up June by 11,000 jobs, to a gain of 31,000, and July by 44,000, turning July’s previously reported loss of 23,000 into a gain of 21,000. Together, those two months came in 55,000 higher than first reported. Over the prior 12 months, payrolls had averaged monthly gains of 31,000.
Paychecks continued to grow, but slowly. Average hourly earnings rose 10 cents in August, or 0.3 percent, to $37.75, bringing the 12-month increase down to 3.1 percent.
The number of long-term unemployed, those out of work 27 weeks or longer, stood at 1.9 million, or 27.0 percent of all unemployed people. Those jobless for less than five weeks rose slightly to 2.0 million. The number of people working part time for economic reasons fell by 414,000 to 4.4 million.
The report lands with the Federal Reserve preparing for its next policy meeting. The Federal Open Market Committee voted 9-3 in July to leave its benchmark rate unchanged at 3.5 percent to 3.75 percent, while three officials favored a quarter-point increase. The Fed said inflation remained elevated relative to its 2 percent target, and its next meeting is scheduled for Sept. 15-16.
The September employment report is due in early October.
