US Economy Adds Fewer Jobs than Expected in August

The US labor market added fewer jobs than expected in August, a sign that the job market is slowing down as the economy approaches full employment.

The non-farm payrolls added 151,000 jobs in August, down from 275,000 jobs created in July, the Labor Department report showed on Friday in Washington.

Some analysts had earlier predicted that a better than expected job report would increase the odds of the Federal Reserve raising rates this year, but that a worse than expected job report will likely nullify that notion as low productivity recorded in the manufacturing sector in August is key in Fed’s rates decision, according Fed Chair Janet Yellen.

While few others have said it is too early to tell Fed’s next step.

“Overall, it still looks like the job market is doing well,” said Michael Feroli, chief U.S. economist at JPMorgan Securities LLC in New York, who projected a 150,000 gain in payrolls. Even so, “this probably takes a little bit away from the case for a September move,” with the shorter workweek “a bit of a concern,” said Feroli, who projects the Fed will raise rates in December.