187,000 new jobs added in August continue to signal an easing labor market

The U.S. economy added 187,000 jobs in August, in line with most estimates, and the unemployment rate rose by 0.3 percentage points to 3.8 percent, as the number of unemployed persons jumped by 514,000, to 6.4 million.

The June numbers were revised down by 80,000, from 185,000 to 105,000 jobs added, and the July numbers were revised down by 30,000, from 187,000 to 157,000 jobs added. The past three months of jobs data has revealed a cooling labor market that is potentially finding stability after its strong previous two years. Before the past three months, the previous 29 months had each seen 200,000 jobs added.

The cooling labor market may be compelling data for the Fed to keep rates where they are, a decision that will be decided at their meeting Sept. 19-20. In his remarks in Jackson Hole, Wyo., in August, Jerome Powell said, “Evidence that the tightness in the labor market is no longer easing could also call for a monetary policy response.” T