The U.S. job market rebounded in August as employers added a surprising 162,000 jobs. The unemployment stayed at a low 4.1%.
Friday’s strong jobs report reflected employment gains in food services and local government education, notching tens of thousands of new jobs in each sector, according to the Bureau of Labor Statistics. The manufacturing and health care industries continued to march on a monthslong upward trend.
Revisions added 55,000 jobs to June and July payrolls.
Hiring has been up and down this year, two months before midterm elections and at a time when voters are unhappy about the economy and the high cost of living in particular.
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Those problems are exacerbated by wage growth that isn’t keeping up with inflation. Workers saw a 0.3% increase in average hourly earnings in August, according to the jobs report.
“In general this is a strong report. The main problem is that wage growth continues to slow as workers lose more leverage in the labor market,” said Ben Zipperer, a senior economist at the liberal Economic Policy Institute who studies wages.
Wages rose by 3.1% over the year ending in August. Though last month’s inflation report will not be released until next Friday, the annual inflation rate punched in at 3.4% in July.
It’s not just workers facing challenges in the economy. Employers are dealing with their own labor market issues, as well.
Companies are contending with a shortage of workers — the result of President Donald Trump’s immigration crackdown and the retirement of baby boomers — and some are responding by using technology for tasks that human beings used to do.
But employers have been reluctant to let go of the staff they have, so most Americans enjoy unusual job security and unemployment is low.
Paul Wiseman reported from AP.
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