U.S. Jobs Growth Slows to 143,000 in August, Unemployment Drops to 4%

The U.S. economy added 143,000 nonfarm jobs in August, falling short of economists' expectations of 300,000, according to the Bureau of Labor Statistics. The unemployment rate dropped to 4%, the lowest level since May 2020, while average hourly earnings rose by 0.5%, beating estimates of 0.3%.

The labor force participation rate remained unchanged at 62.4%, indicating that the workforce is still not fully recovered from the COVID-19 pandemic. The number of long-term unemployed individuals, those jobless for 27 weeks or more, decreased by 252,000 to 1.1 million.

The leisure and hospitality sector led job growth, adding 43,000 jobs, while professional and business services gained 40,000 positions. Retail trade employment increased by 25,000, while manufacturing added 22,000 jobs.

The report comes as the Federal Reserve continues to grapple with inflation, which has been running at its highest level in decades. The central bank has been raising interest rates to cool the economy and bring inflation under control. The latest jobs report may influence the Fed's decision on the pace and extent of future rate hikes.

The U.S. economy has been showing signs of slowing down, with GDP growth decelerating in the first half of the year. The jobs report suggests that the labor market remains resilient, but the pace of job growth is moderating. As the economy navigates the challenges of high inflation and a potential recession, the labor market will be a key indicator to watch.