Weak US Payroll Gain of 22,000 Cements Case for Fed Rate Cut (2)

US job growth cooled notably last month while the unemployment rate rose to the highest since 2021, fanning concerns the labor market may be on the cusp of a more significant deterioration.

Nonfarm payrolls increased 22,000 in August, and revisions showed employment shrank in June for the first time since 2020. The jobless rate ticked up to 4.3%, according to a Bureau of Labor Statistics report out Friday.

Traders solidified bets that the Federal Reserve will cut interest rates at its Sept. 16-17 meeting, which Chair Jerome Powell signaled in a speech last month during the central bank’s annual Jackson ...