The August employment report showed nonfarm payrolls jumped by 162,000, well above the 55,000 jobs increase expected in a survey compiled by Bloomberg as of 7:15 am ET, while July payrolls were revised upward to a 21,000 increase and June payrolls were revised upward to a 31,000 increase, for a net upward revision of 55,000 jobs.
Private payrolls surged by 127,000 in August after a 71,000 increase in July, well above the increase of 50,000 private jobs expected. Leisure and hospitality jobs increased by 62,000 after a 21,000-decline and government sector jobs increased by 35,000 after a decline of 50,000.
The unemployment rate remained at 4.1%, as expected, while the labor force participation rate rose to 61.6% from 61.4% in July and the size of the labor force surged.
Hourly earnings rose by 0.3%, as expected after a 0.2% gain in July. However hourly earnings were up 3.1% year-over-year after a 3.2% gain in July and was the slowest annual rate since May 2021.
The average workweek rose to 34.4 hours from 34.3 hours in July, above the 34.3 hours expected.
The monthly employment report released by the Bureau of Labor Statistics consists of two separate surveys and is considered the most important data release for the month. The survey of businesses measures the levels of employment and wages and the length of the average workweek, broken down by industry.
The survey of households measures the number of people working or looking for work, the unemployment rate, those that have left the workforce and reasons for part-time work.
Market reaction can be mixed, particularly when the two surveys disagree. A strong increase in employment or a decline in the unemployment rate is generally a positive for stocks as sign of a strong US economy, but bonds would react negatively to the same news, particularly if wages rise sharply at the same time.