HeadlinesBriefing favicon HeadlinesBriefing.com

Robust Hiring Reinforces U.S. Economy Strength

New York Times Top Stories •
×

Businesses in August shook off uncertainty related to higher gas prices, tariffs and artificial intelligence, unleashing an unexpected wave of hiring that affirmed the labor market’s health. Employers added 162,000 jobs on a seasonally adjusted basis 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 upward by 55,000, bringing the average increase over the past three months to just over 70,000.

While the health care sector fueled much of the employment growth last year, last month’s gains touched even sectors that had appeared troubled, evidence of strength in the broader economy. The zesty employment figures come at a time of broader economic resilience, marked by strong corporate profits and vigorous capital investments spurred by A.I. Consumer spending, buoyed by a roaring stock market, has stayed resilient despite higher gas prices brought on by the war in Iran.

Puncturing the rosy notes was wage growth, which continued to cool in August. Growth in average hourly earnings fell to 3.1 percent over the past year, the slowest pace since the depths of the pandemic and lower than the inflation rate. The tepid wage growth supports the Federal Reserve’s view that the labor market is not a source of inflationary pressure.

One of the more surprising drivers of growth last month was leisure and hospitality, which added 62,000 jobs after months of weakness. Construction added 22,000 jobs, and manufacturing added 16,000 jobs. “Businesses seem to have become accustomed to operating in a bit of the unknown,” said Dawn Fay, operational president at Robert Half.