What happened: The August U.S. employment report showed nonfarm payrolls rising by roughly 22,000 while the jobless rate climbed to 4.3%, the highest since late 2021. Prior months were revised, including a rare net decline in June.
Why it matters
A softer labor market reduces the risk of entrenched wage‑price pressures and strengthens the case for a rate cut at the Federal Reserve’s September meeting. It also cools household income growth, which can weigh on consumption into Q4.
By the numbers / context
- Payrolls: ~22,000 in August; unemployment: 4.3%.
- Revisions: earlier months trimmed; June showed a net job loss.
- Sector split: healthcare steady; manufacturing and temp help softer.
What to watch
How big the Fed’s cut is (and what it signals about the path into 2026), and whether upcoming CPI data confirm a disinflation trend that offsets tariff‑related price pressures.