The U.S. labor market saw less-than-expected growth in August, with an increase of 142,000 nonfarm payrolls, according to the Labor Department. This figure is up from July’s initially reported 114,000 jobs added but falls short of economist estimates of 160,000. Despite the slower job growth, the unemployment rate dipped to 4.2% last month, down from July’s 33-month high of 4.3% and better than forecasts of 4.2%.
The government also revised down job growth for June and July, reporting 86,000 fewer jobs created during that period. This makes August the weakest month for job growth since 2017 when nonfarm payrolls increased by 135,000.
According to Forbes, Carson Group strategist Sonu Varghese commented on the data, stating, “August payroll data indicate risks are rising as the labor market is clearly softening.”
The tepid update led to cautious reactions in financial markets. S&P 500 futures contracts were down slightly after the nonfarm payrolls announcement, while yields for 2-year and 10-year U.S. Treasury notes fell to their lowest level in more than a year, indicating traders are moving money into less risky assets in the face of economic uncertainty.
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