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Reuters

Job growth slowed sharply in the United States last month and more people gave up the hunt for work, giving a cautious Federal Reserve more reasons to wait a bit longer before raising interest rates.
Nonfarm payrolls rose 142,000, the smallest increase in eight months, the labour department said yesterday.
The unemployment rate fell 0.1 percentage point to 6.1 per cent as people dropped out of the labour force.

Figures for June and July were revised to show 28,000 fewer jobs created than previously reported, adding to the weaker tone. In addition, manufacturing saw no job growth and retail payrolls fell for the first time since February.
Economists had expected payrolls to rise 225,000 last month.
The surprise slowdown in job growth is at odds with labour market indicators such as first-time applications for unemployment benefits, which are hovering near their pre-recession levels.
In addition, manufacturing and service sector surveys showed strong employment growth and household perceptions of the labour market brightened significantly, which economists said were consistent with tightening conditions.
Some economists had cautioned that the employment report could miss expectations because of seasonal factors. An upward revision to last month's data is most likely.
The employment report supports the Fed's cautious approach to monetary policy.
Fed chairman Janet Yellen is concerned about sluggish wage growth, the still-elevated numbers of people working part-time even though they want full-time employment, and those still suffering from a long spell of joblessness.
The central bank has pointed to these metrics as evidence of "significant underutilisation" of labour market resources that merits a stimulative monetary policy.
The labour force participation rate, or the share of working-age people who are employed or at least looking for a job, fell to 62.8 per cent from 62.9 per cent in July.
However, a broad measure of joblessness that includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment fell to 12 per cent, the lowest level since October 2009, from 12.2 per cent in July. The number of long-term unemployed was the lowest since January 2009.
The jobs data comes before a Fed policy meeting next week. The central bank has kept benchmark lending rates near zero since December 2008 and financial markets do not foresee an increase until around the middle of next year.
Last month's job gains were spread broadly across the economy. The private sector accounted for the bulk of the increase in payrolls, advancing 134,000 after rising 213,000 in July.
Government employment rose 8,000 as state governments hired teachers at the start of the new school year.


US job growth slows to 8-month low

Only 142,000 people found jobs last month - the smallest payroll rise in eight months - against 225,000 expected by economists. Photo: AFP

Business

Economy

Global Economy

Surprise weakening in labour market likely to delay rise in interest rates


Job growth slowed sharply in the United States last month and more people gave up the hunt for work, giving a cautious Federal Reserve more reasons to wait a bit longer before raising interest rates.


US job growth slows to 8-month low

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Surprise weakening in labour market likely to delay rise in interest rates

Surprise weakening in labour market likely to delay rise in interest rates