US job growth slows further in August – NFP

US nonfarm payrolls delivered a major disappointment in August, with the economy adding only 22,000 jobs compared to an upwardly revised 79,000 in July and far short of expectations for a 75,000 increase.

The report also showed unemployment rising to 4.3% from 4.2% in July, reinforcing signs of continued labor market weakness and bolstering expectations for a Fed rate cut this month.

This NFP release completes a weak set of August labor data, following earlier JOLTS and ADP reports that already pointed to deterioration, as both new job creation and private sector hiring fell short of forecasts. Notably, data showed that in July, the number of unemployed exceeded job vacancies for the first time since the 2020 pandemic.

The slowdown in the labor sector has been largely attributed to sweeping US import tariffs and tighter immigration policies, which have reduced the available labor pool.