The U.S. Labor Department reported that nonfarm payrolls increased by 162,000 in August, well above the 56,000 jobs economists had forecast. The unemployment rate remained unchanged at 4.1%, a modest decline from the 4.5% peak recorded in November.
Revisions to earlier months also showed stronger employment. July's job gain was revised upward by 44,000, turning a previously reported loss of 23,000 into a net increase of 21,000. June's figure was corrected upward by 11,000, raising the gain to 31,000.
The robust payroll data prompted a modest sell‑off in U.S. equities. The Dow Jones Industrial Average fell 169 points, or 0.3%, to 53,516, while the S&P 500 slipped about 0.1%. Treasury yields rose, with the 10‑year note climbing three basis points to 4.792% and the two‑year note gaining seven basis points to 4.406%, its highest level since January 2025.
In related market moves, shares of companies targeting oil reserves around the Falkland Islands dropped after Argentina threatened sanctions. Rockhopper Exploration fell 6.4% and Border & Southern slipped 12.6% in after‑hours trading.
Federal Reserve officials are likely to weigh the stronger labor market when assessing the timing of any further rate adjustments. The data also contrasted with Canada’s labor market, where employment declined by 41,700 jobs in August.
President Donald Trump used the payroll surprise to call for lower interest rates, but some Fed members, including Kevin Warsh, warned that inflationary pressures could still justify additional tightening.
