U.S. employment growth slowed more than expected in August after two straight months of robust gains, and wages were tepid, which could effectively rule out an interest rate increase from the Federal Reserve this month.
Nonfarm payrolls rose by 151,000 jobs last month after an upwardly revised 275,000 increase in July, with hiring in the manufacturing and construction sectors declining, the Labor Department said on Friday. The unemployment rate was unchanged at 4.9 percent as more people flocked to the labor market.
The report came on the heels of news Thursday that the manufacturing sector contracted in August for the first time in six months, which had already cast a shadow on a potential rate hike at the Fed's Sept. 20 to 21 policy meeting.
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