August Payrolls Hit 162,000, More Than Double Forecasts

US employers added 162,000 jobs in August, the Labor Department said Friday, against forecasts of roughly 55,000 to 65,000. The unemployment rate held at 4.1%. July was revised to a gain of 21,000 from an initially reported loss of 23,000.

Restaurants and bars added 59,000 jobs and local-government education 42,000. Average hourly earnings grew 3.1% from a year earlier, the slowest pace since May 2021. The two-year Treasury yield rose 4 basis points to 4.374%, a 52-week high, and the 10-year closed at 4.78%. The S&P 500 fell 0.4% and the Dow 0.5%.

Market-implied odds of a quarter-point rate increase at the Federal Reserve's September 16 meeting moved to roughly even, from below 50% before the report, on CME FedWatch and Polymarket. The next inflation reading lands before the meeting and will decide whether the hike is priced in or priced out.