Sluggish US jobs report clears the way for Federal Reserve to cut interest rates

WASHINGTON (AP) — Hiring by America's employers picked up a bit in August from July's tepid pace, and the unemployment rate dipped for the first time since March in a sign that the job market may be cooling but remains sturdy.

Employers added a modest 142,000 jobs, up from a scant 89,000 in July, the Labor Department said Friday. The unemployment rate ticked down to 4.2% from 4.3%, which had been the highest level in nearly three years. Hiring in June and July, though, was revised sharply down by a combined 86,000. July's job gain was the smallest since the pandemic.

"The labor market is weakening," said Eugenio Aleman, chief economist at Raymond James Financial. "It is not falling apart, but it is weakening."