The U.S. labor market is flexing its muscles. August saw a whopping 162,000 new jobs, crushing the consensus estimate of just 56,000. That's a clear sign the economy is heating up, not cooling down.
Private payrolls led the charge, though the article's numbers are a bit scrambled. Government jobs added 35,000, according to the Bureau of Labor Statistics. The total rebound from July's revised 21,000 (which was initially reported as a loss of 23,000) shows momentum is building.
Unemployment held steady at 4.1%, right in line with expectations. But here's the twist: average hourly earnings rose 0.3% month-over-month, matching forecasts, yet the annual pace dipped to 3.1% from 3.2% in July. So wages are growing, just a touch slower.
Investors didn't waste a second. Fed rate hike odds surged right after the release, making a September 16 move look more likely. This is a developing story, so stay tuned.
