The US economy showed a stronger-than-expected recovery in August, with the creation of 162,000 new jobs, a figure that far exceeded analysts' forecasts of around 53,000.
The manufacturing sector also showed signs of recovery, adding 16,000 workers, representing one of the main indicators of strengthening industrial activity. Manufacturing employment had reached its lowest level in December 2015.
The Labor Department report also showed that the unemployment rate remained at 4.1%, while labor force participation increased slightly during the month, although it still remains below the level recorded at the beginning of the year.
The results contradict expectations of a further slowdown in the labor market and offer a more favorable outlook for the US economy in the period leading up to the midterm elections. The rebound also raised expectations about the Federal Reserve's next decisions, as a more resilient labor market could make it more difficult to cut interest rates. Even so, President Donald Trump again publicly pressured the Fed to lower borrowing costs.
