US non-farm payrolls showed a sharp slowdown in hiring in August, with employment rising by only 22k, far below the 78k expected. Revisions painted a mixed picture, with July adjusted slightly higher to 79k but June lowered into contraction at -13k.
Unemployment rate ticked up from 4.2% to 4.3% as expected, while the participation rate edged higher by 0.1% to 62.3%. The employment-population ratio was steady at 59.6%, suggesting little improvement in labor utilization despite modest gains in the workforce.
Wage growth remained steady, with average hourly earnings rising 0.3% mom and up 3.7% over the past year. While pay increases are holding, the weak job creation numbers highlight the Fed’s dilemma: inflation may be edging down, but labor market cooling is becoming more pronounced.
