US Payroll Surprise Strengthens the Case for Higher Rates as Hiring Rebounds

Washington, D.C., 5 September 2026 – The United States labour market rebounded sharply in August as employers added 162,000 nonfarm jobs and unemployment remained at 4.1%, strengthening the argument for restrictive monetary policy. The payroll increase was far above the 65,000 expected by surveyed economists and exceeded the average monthly increase of 31,000 over the previous 12 months.

The official report revised the previous two months higher by a combined 55,000 jobs. June’s increase was lifted by 11,000 to 31,000, while July was revised from a reported decline of 23,000 to a gain of 21,000. The changes reduce concern that the labour market had entered an abrupt slowdown and show why investors must assess revisions alongside the headline.