The U.S. labor market showed fresh signs of cooling in August, according to the Nonfarm Payrolls report released Friday, September 5.
🔹 Key Numbers
Jobs Added: +22,000 (vs. forecast of +75,000)
Unemployment Rate: 4.3% (up from 4.2% in July)
Revisions: June revised to –13,000 jobs; July revised up to +79,000. Combined, 21,000 jobs were cut from prior estimates.
Wage Growth: Average hourly earnings rose 0.3% month-over-month, up 3.7% year-over-year.
Average Workweek: Stable at 34.2 hours.
🔹 Sector Breakdown
Gains:
Health care: +31,000
Social assistance: +16,000
Losses:
Federal government: –15,000
Manufacturing: –12,000
Mining, quarrying, oil & gas: –6,000
🔹 Market & Policy Reaction
The weaker-than-expected payroll data, combined with a rising unemployment rate, has increased speculation that the Federal Reserve may cut rates more aggressively at its September meeting—possibly by 50 basis points.
Markets reacted swiftly:
U.S. Dollar weakened.
Treasury yields dropped on safe-haven demand.
Equities saw mixed moves, with S&P 500 and Nasdaq futures climbing while the Dow slipped.
🔹 Why It Matters
The report highlights a labor market slowdown after months of resilience, suggesting economic momentum is weakening. For investors, this could mean a more dovish Federal Reserve stance, increased volatility in the dollar, and ripple effects across risk assets including crypto markets.
