US August Nonfarm Payrolls Rise 162,000, Crushing Forecasts as Bitcoin Falls Back Below $80,000

U.S. nonfarm payrolls rose far more than expected in August, signaling a stronger labor market than anticipated. The unemployment rate was unchanged at 4.1%.

The Labor Department’s Bureau of Labor Statistics said on September 4 that nonfarm payrolls increased by 162,000 in August. That was well above the market forecast of 55,000 and a sharp pickup from the prior month’s revised gain of 21,000.

August job growth was relatively strong compared with the average monthly increase of 31,000 over the past 12 months. Restaurants and bars added 59,000 jobs, while local government education added 42,000. Manufacturing employment also increased by 16,000.

By contrast, employment in the information industry fell by 23,000. Jobs in computing infrastructure-related fields, including data processing and web hosting, declined by 8,000. Publishing shed 7,000 jobs, while broadcasting and content-related businesses lost 5,000.

The unemployment rate was unchanged from the previous month at 4.1%, with the number of unemployed people estimated at about 7 million. The labor force participation rate edged up to 61.6%.

Wage growth also continued. Average hourly earnings for private nonfarm employees rose 0.3% from a month earlier to $37.75. They were up 3.1% from a year earlier.

Earlier payroll figures were revised higher. June job growth was raised to 31,000 from 20,000, while July was revised to a gain of 21,000 from a decline of 23,000. Combined payrolls for June and July were 55,000 higher than previously reported.

Markets are watching the report for clues on the Federal Reserve’s September rate decision. With expectations split between another rate increase and a pause, stronger-than-expected hiring could bolster expectations for further tightening.

Bitcoin was trading at $79,775, down 1.79%, immediately after the payrolls data was released.