The North American economy created 162,000 jobs in August, largely surpassing market expectations. The survey conducted by Dow Jones pointed to an expectation of only 53,000 new jobs, less than one-third of the actual figures. This was the strongest employment growth in the world's largest economy since March.
The data released by the Department of Labor also revealed an upward revision of July's figures, which shifted from a loss of 23,000 jobs to a creation of 21,000 positions. The unemployment rate remained unchanged at 4.1%.
The numbers reinforce the idea that the Federal Reserve will indeed need to raise the benchmark interest rates again at the September meeting. Inflation continues to prove persistent and remains considerably above the 2% target, while the labor market is once again showing signs of rigidity and overheating.
