U.S. annual wage growth topped estimates in August, while companies hired more employees than expected, strengthening the case for further interest rate hikes this year.
Total nonfarm payroll employment increased 201,000 last month, higher than Econoday's consensus estimate of 195,000, data from the U.S. Labor Department showed.
Job gains for June and July were revised down to 208,000 and 147,000, respectively.
Average hourly earnings rose 0.4%, or 10 cents, month over month - the highest since December 2017.
On an annual basis, hourly wages increased 2.9%, or 77 cents, surpassing July's reading of 2.7% and Econoday's estimate of 2.8% year-over-year growth.
The unemployment rate was unchanged at 3.9%.
Ten-year yields on the U.S. Treasurys rose to 2.909% as of 8:46 a.m. ET, shortly after the data was released.
"So despite all of the worries about the impact from protectionism, Fed rate hikes and emerging market woes, the US economy continues to roar ahead," said James Knightley, chief international economist at ING, in a note.
"As such the Fed’s message that monetary policy remains 'accommodative' is accurate so we fully expect officials to continue with the strategy of 'gradual' policy normalization. To us, this suggests a rate hike in both September and December," Knightley wrote.
Minutes of the Federal Reserve's August meeting showed many Fed officials believe the next rate hike should come "soon," signaling they may opt for one in September.
Speaking at the Kansas City Fed's annual conference at Jackson Hole, Wyo., Fed Chairman Jerome Powell said the central bank's gradual path of tightening would guard against a potentially overheating economy while letting the current expansion continue.