Job gains beat expectations in August while wage growth surged past estimates during a strong month for U.S. workers.

In August, the U.S. economy added 201,000 jobs and the unemployment rate held steady at 3.9%. Nonfarm payrolls were expected to rise by 190,000 in August with the unemployment rate forecast to drop to 3.8%.

The real standout in the report, however, were the gains in average hourly earnings, which rose 0.4% over last month and 2.9% over last year. Wages have been closely tracked for signs of building inflation pressures in the economy. This is the best annual private wage growth figure since May 2009.

Average hourly earnings were expected rise 0.2% over the prior month and 2.7% over the prior year.

In this July 3, 2018, file photo, a construction worker lowers himself on a forklift at a construction site in Chicago. On Tuesday, Aug. 4, the Commerce Department reports on U.S. construction spending in July. (AP Photo/Annie Rice) More

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