The U.S. added 142,000 jobs in August, with the unemployment rate decreasing to 4.2%.
Economists had forecasted 161,000 jobs and a 4.2% unemployment rate, in line with the actual figures.
The big picture: The Federal Reserve is preparing to reduce interest rates by at least a quarter point due to concerns about lagging cuts and slowing job gains.
- Hiring has slowed significantly from the peak post-pandemic surge, aligning with pre-pandemic levels despite a notable downward revision in the previous month.
- The unemployment rate has also increased from a historic low of under 4% to 4.3% in July, which is still low by historical standards.
What we’re watching: The Federal Open Market Committee will hold its September meeting before the upcoming 2024 general election, with the handling of rates becoming increasingly politicized.
