U.S. non-farm payrolls rose modestly in August, but unemployment fell

September 6, despite a drop in the unemployment rate, U.S. hiring remained tepid in August, likely intensifying the current debate over how much the Federal Reserve should cut interest rates. Data released by the Bureau of Labor Statistics on Friday showed that U.S. non-farm payrolls increased by 142,000 in August, after two months of data were revised down. The number of non-farm payrolls in June and July was revised down by 86,000. The unemployment rate fell to 4.2% in August. After the data was released, U.S. Treasury yields fell, S & P 500 index futures continued to decline, and the dollar's decline widened. The report shows that the job market is losing momentum. While layoffs remain largely subdued, many companies are delaying expansion plans due to high borrowing costs and uncertainty ahead of the November presidential election. Job growth was driven by hiring in health care and social assistance. Hiring also increased in construction and government. The diffusion index, which measures the breadth of job growth, rose. Participation was unchanged at 62.7 percent in August. Participation among workers in the 25-54 age bracket fell for the first time since March.