U.S. August nonfarm payrolls rise 162,000, topping forecasts

The U.S. Bureau of Labor Statistics said U.S. nonfarm payrolls increased by 162,000 in August, above the market forecast for a gain of 55,000. The unemployment rate was 4.1%, in line with expectations of 4.1%. The nonfarm payrolls report released by the U.S. Labor Department is an official gauge of employment changes across the private and government sectors. Nonfarm payrolls and the unemployment rate are among the data points the Federal Reserve considers when making interest-rate decisions. Strong employment data, including higher payrolls and lower unemployment, can support consideration of a rate hike or a hold to prevent overheating, while weaker data, including lower payrolls and higher unemployment, can support consideration of a rate cut to bolster the economy.