BLS Reports 162,000 August Payrolls Beating Forecasts as Real Wages Declined
The Bureau of Labor Statistics reported 162,000 nonfarm payroll jobs added in August, more than triple the consensus forecast of around 53,000 to 56,000, while upward revisions turned July's initial job loss into a gain of 21,000. Average hourly earnings rose 3.1 percent year-over-year to $37.75, but the most recent real earnings data show purchasing power fell 0.2 percent over the prior year, meaning nominal wage growth has not kept pace with inflation. With 30-year mortgage rates at 6.71 percent and the Federal Reserve meeting September 15–16, the stronger-than-expected payroll number raises the possibility of rate-hike pressure, though August inflation data needed to complete the picture were not yet available.