US hiring picks up, while unemployment edges down
US hiring picked up pace in August while the jobless rate crept down, according to government data released on Friday, paving the way towards the start of central bank rate cuts this month. The world's biggest economy added 142,000 jobs last month, an increase from July's figure which was revised notably lower to 89,000, said the Department of Labour. The August figure was below economists' expectations of 165,000, according to a Briefing.com consensus forecast. The unemployment rate declined slightly from 4.3 percent to 4.2 percent, a shift that should assuage policymakers' worst fears. Overall, the figures reaffirm perceptions of a cooling labour market – with job gains in June revised significantly downwards as well. Analysts have been eying the jobs market as high interest rates bite and inflation cooled, with some arguing that the Federal Reserve has waited too long to lower the benchmark lending rate. How well the jobs market holds up would affect the size of Fed rate cuts following its September 17-18 policy meeting. Average hourly earnings rose more than expected in August, by 0.4 percent to US$35.21, said the Labour Department. From a year ago, wage growth was 3.8 percent up – an acceleration from before also. (AFP)