U.S. job growth picked up in August but missed economists’ expectations, while the unemployment rate was little changed.
The Labor Department on Friday reported that employers added 142,000 jobs in August, compared to the 160,000 gain that was projected by LSEG economists.
The unemployment rate also dipped slightly to 4.2%, in line with expectations, after it had unexpectedly risen to 4.3% in July – which was the highest level for the jobless rate since October 2021.
The number of jobs added in the prior two months were both revised downward, with job creation in June revised down by 61,000 from a gain of 179,000 to 118,000 – while July was revised down by 25,000 from 114,000 to 89,000.
With the revision, July’s job creation was the lowest nonfarm payrolls reading since December 2020.
Policymakers at the Federal Reserve have been closely monitoring the labor market ahead of a widely anticipated interest rate cut later this month. Interest rates have been at the highest level in 23 years amid the central bank’s bid to tamp down inflation, with the benchmark federal funds rate sitting at a range of 5.25% to 5.50%.
Markets have expected the Fed to announce a 25 basis point cut at their next policy meeting on Sept. 17-18, although the new data showing continued softness in the labor market could boost the case for a 50 basis point cut.
This is a developing story. Please check back for updates.
