U.S. creates only 38,000 private jobs in August, less than expected

WHAT HAPPENED

Private companies in the U.S. created 38,000 jobs in August, less than the 47,000 expected and the 46,000 in July. It is the lowest increase since January. Education and health hired more; factories lost jobs.

WHY IT MATTERS

The labor market is gradually cooling: companies need less staff and have less pressure to raise wages. Construction, hotels, and restaurants still hired, but manufacturing and professional services cut back. This could lead the Federal Reserve to lower rates sooner.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, weaker employment may reduce consumption and sales for some companies. But lower rates could make loans and mortgages cheaper and change the value of stocks, bonds, and currencies like the peso, the real, or the rupee.