US job growth slowed further in August – NFP

US nonfarm payrolls strongly disappointed by adding only 22,000 jobs in August, compared to upwardly revised 79,000 previous month and falling well below expectations for 75,000 rise.

The same report showed rise in unemployment to 4.3% last month from 4.2% in July, adding to signals that labor market continues to weaken and boost expectations for Fed rate cut this month.

The NFP completes the August report from US labor sector, after two reports released earlier this week (JOLTS and ADP) contributed to negative picture, as creation of new jobs and hiring in private sector fell below expectations, adding to the news that there were more unemployed people than vacancies in July for the first time since the pandemic in 2020.

US sweeping import tariffs and an immigration crackdown that has reduced the labor pool were mainly behind the latest slowdown in the labor sector.