August job growth steady, with Fed set to cut rates

According to data released Friday by the Labor Department, the US added 142,000 jobs in August and the unemployment rate ticked down to 4.2 percent, easing concerns of a wider economic downturn even as the labor market cools.

The August job gain fell short of economists’ forecasts of 161,000 jobs, although it exceeded the 114,000 jobs added in July and matched unemployment expectations.

The report ultimately contained neither a notable downturn nor acceleration that threatened to catch the Fed off-guard as it prepares to reduce interest rates by at least 0.25 percentage points later this month.