Kathmandu— The US economy added 162,000 jobs in August, significantly exceeding analyst forecasts, with local government education and food services sectors leading the surge, while the unemployment rate stayed unchanged, according to the Labor Department's Bureau of Labor Statistics report released Friday.

Education and Food Services Drive Growth

Local government education, primarily public schools, accounted for nearly 42,000 of the new jobs as the 2026–27 school year began across much of the US, with teachers typically returning to payrolls after summer breaks. Food service jobs saw a substantial increase of 59,000 positions compared to the previous month, reflecting seasonal hiring patterns.

Construction and healthcare also contributed to the job gains, adding 22,000 and 12,000 jobs respectively, while the information sector experienced a decline of 23,000 jobs, including layoffs at companies like Scripps TV and Zillow.

The strong jobs report has increased expectations for a Federal Reserve rate hike at its upcoming policy meeting, with CME Group's FedWatch indicating a 60 percent chance of a 25 basis point increase to 3.75–4.00 percent.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.