Hiring was unexpectedly strong in August, as employers pushed past uncertainty related the war in Iran, tariffs and artificial intelligence to expand their payrolls. Employers added 162,000 jobs last month, the Labor Department reported on Friday, and the unemployment rate held steady at 4.1 percent. Job gains for June and July were revised up by 55,000, adding to the brighter picture of the labor market.

Growth in August was especially strong in the leisure and hospitality sector, which added 62,000 positions. Wage growth continued to cool in August, with average hourly earnings rising 3.1 percent compared to a year ago. That was the slowest pace since the depths of the pandemic and lower than the inflation rate.

Despite signs in the spring that hiring was gaining momentum, there were concerns that the labor market was reverting to a ho-hum state. Job openings and the rate of hiring have stalled even as layoffs remain exceedingly low. This report, however, is an encouraging sign that the fragile labor market may be on sturdier footing.