Hiring Slows Sharply in August, U.S. Adds 22,000 Jobs While Jobless Rate Rises to 4.3%

Weak Jobs Data Fuels Speculation of Larger Fed Rate Cut

U.S. payrolls growth slowed sharply in August, reinforcing expectations of a Federal Reserve rate cut this month and raising the possibility of a 50 basis point move.

Nonfarm payrolls rose by just 22,000, far below forecasts of 75,000. June’s figures were revised down to show job losses, the first since 2020, while July’s count was adjusted slightly higher. The unemployment rate edged up to 4.3%, while wages climbed in line with expectations.

Markets reacted immediately: Bitcoin gained about $500 to trade near $112,800, gold jumped to a record $3,644, equities advanced, the dollar weakened, and the 10-year Treasury yield fell to 4.11%.

While traders had been pricing in a 25 basis point cut, the soft jobs report may prompt discussion of a more aggressive move. Risk assets, including bitcoin, could benefit if the Fed opts for deeper easing.