U.S. employers hired more workers than expected in August, marking the 20th straight month of job growth. However, moderate wage growth and a rise in the unemployment rate to 3.7 percent could ease pressure on the Federal Reserve to deliver a third 75 basis point interest rate hike this month.
The Labor Department's closely watched employment report on Friday also showed a dip in the average workweek. The increase in the unemployment rate came as more than 700,000 entered the labor market, pushing the size of the labor force to a record high. The overall strength in the labor market underscores the economy's resilience, despite the front-loading of rate hikes by the U.S. central bank that have raised the risk of a recession.
Last week, Fed Chair Jerome Powell warned Americans of a painful period of slow economic growth and possibly rising unemployment as the central bank aggressively tightens monetary policy to quell inflation.
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