US hiring up unexpectedly in August, unemployment rises

Hiring in the United States logged a surprise jump last month, government data showed on Friday, while unemployment rose to the highest level since early 2022.

The world's biggest economy added 187,000 jobs in August, according to the Labor Department, but wage growth slipped and the jobless rate climbed to 3.8 percent.

The uptick in job gains came as employment figures for June and July were both revised downwards, and the figures overall signal a steady pace of hiring while the labor market shows signs of cooling.

Policymakers have been struggling to cool the economy and rein in stubborn inflation, with the Federal Reserve lifting interest rates rapidly — recently bringing them to the highest level in over two decades.

But the central bank has also vowed to be data-dependent in its upcoming decisions.

Meanwhile, a relatively strong labor market has added to hopes that the United States can bring inflation down without tipping the economy into a recession.

On Friday, Labor Department data showed that average hourly earnings in August rose 0.2 percent, slower than the month before.

"Employment continued to trend up in health care, leisure and hospitality, social assistance, and construction," the department said.

Employment in transportation and warehousing fell.