US Adds 22K Jobs in August, Boosting Fed Rate Cut Bets.

U.S. economy adds just 22,000 jobs in August, missing forecasts as labour market cools.

The U.S. economy added fewer jobs than expected in August, signaling further cooling in the labor market and strengthening the case for a Federal Reserve rate cut later this month.

Data from the Bureau of Labor Statistics showed non-farm payrolls rose just 22,000, sharply below July’s upwardly revised 79,000 and well short of forecasts for 75,000. Gains in health care were partly offset by losses in government employment, reflecting efforts to reduce the federal workforce, while mining, quarrying, and oil and gas also shed jobs.

The unemployment rate edged up to 4.3% from 4.2%, in line with estimates, while average hourly earnings growth slowed to 3.7%, also matching projections.

With markets already pricing in a September rate cut, CME’s FedWatch Tool now assigns nearly a 100% probability of a 25-basis point reduction, which would bring rates down from the current 4.25%–4.5% range.

Policymakers continue to balance their dual mandate of price stability and maximum employment, but recent commentary suggests greater emphasis on supporting the labor market. A rate cut could stimulate business spending and hiring amid tariff-related uncertainty, though risks of reigniting inflation remain.