The US economy added 162,000 jobs in August, more than twice economists’ forecast of 65,000, while the unemployment rate held at 4.1% rather than rising to the expected 4.2%. The Bureau of Labor Statistics data marked the strongest monthly job gain since March and followed an upward revision to July, from a 23,000-job loss to a 21,000-job gain. June was also revised to show 31,000 positions added, up from the original estimate of 20,0000. Hiring broadened across industries, with leisure and hospitality adding 62,000 jobs, local government education adding 41,900, healthcare and social assistance adding 28,400, construction adding 22,000 and manufacturing adding 16,000. However, information and financial activities shed 23,000 and 11,000 jobs, respectively. Wage growth slowed to 3.1% annually, a five-year low, and pay gains trailed inflation for a fourth consecutive month. The diffusion index, which measures employment changes across 250 industries, rose to 55.6, its highest level since December 2024. The report eased concerns about a rapid labor-market deterioration, but economists at Pantheon Macroeconomics said the rebound may reflect payback for weak prior months and a reversal of an education-related seasonal adjustment rather than a lasting acceleration. Treasury yields rose after the release as markets increased expectations that the Federal Reserve could raise interest rates at its mid-September meeting. August’s Consumer Price Index is the remaining major data release before that meeting and is expected to receive close attention.