Non-farm payroll: US jobs growth weakens in August leaving Federal Reserve rate hike uncertain

Clara Guibourg
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Non-farm payroll figures show jobs growth at its slowest since March (Source: Getty)

Weeks of global market turmoil have taken their toll on US job growth, after the number of new jobs created dipped to its lowest level since March, leaving the Federal Reserve with a rate hike dilemma on its hands.

Employment increased by 173,000 in August, show non-farm payroll figures released by the US Department of Labour today.

The figure is down from a high of around 250,000 earlier this summer.

Analysts said the weak figures are unlikely to assuage market fears after the turbulence of Black Monday, as Marcus Bullus, trading director at MB Capital, said:

The August figure is an unconvincing start to the fall and will trigger even more concern in the markets about the state of the global economy.

The Fed, expected to make a decision on a possible US rate hike later this September, faces a tricky choice following this slew of weakening economic data:

The weaker than expected data certainly makes the prospect of an imminent rate rise far less likely. The dollar will almost certainly take a hit.

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