US August payrolls top estimates at 162K

• The previous month recorded -23K.
• A two-month net revision of +55K was reported.
• June's figure was +57K.
• The unemployment rate held at 4.1%, matching expectations.
• The prior unemployment rate was also 4.1%.
• The unrounded rate came in at 4.1413%, compared with 4.0900% previously.
• The participation rate rose to 61.6% from 61.4%.
• The U6 underemployment rate fell to 7.7% from 7.9%.
• Average hourly earnings rose 0.3% month-on-month, matching the forecast.
• On a yearly basis, they increased 3.1%, slightly above the 3.0% estimate.
• Average weekly hours came in at 34.4, versus the expected 34.3.
• Private payrolls added 127K, beating the 45K estimate.
• The prior month's private payrolls were +30K.
• Manufacturing payrolls rose by 16K, above the anticipated 5K.
• Government payrolls increased by 35K, compared with a decline of 53K previously.

Before the data release, fed funds futures implied a 50% probability of a rate hike in September, with 32 basis points of tightening priced in for the year. USD/JPy stood at 156.13, while S&P 500 futures were ahead by 2 points.

The report is strong, prompting a significant bid for the US dollar. The rise in participation reversed a recent trend, preventing the jobless rate from falling below 4.1%.