US job market rebounds with 162,000 new jobs, far surpassing expectations

Hiring far exceeded the 65,000 forecasters had expected, according to a poll by FactSet. Labour Department revisions also looked good, adding 55,000 to June and July payrolls. Employers created 21,000 jobs in July; the Labour Department had originally reported that they would cut 23,000.

Restaurants and bars added 59,000 jobs last month, construction companies 22,000 and manufacturers 16,000.

And the US labour force – the number of people working or looking for work – jumped by 683,000 last month after falling in June and July.

Yet many households are struggling with the high cost of living, and wage gains are not helping much. Average hourly wages rose 3.1 per cent last month from a year earlier, the weakest year-over-year increase since May 2021.