The Bureau of Labor Statistics (BLS) reported that there were 187,000 jobs created in August. While this was slightly better than estimates, job growth in June and July was revised lower substantially, subtracting 110,000 jobs in those months combined. The unemployment rate also rose from 3.5% to 3.8%.

What’s the bottom line? Job gains are clearly slowing, with the last three months averaging just 150,000 new jobs per month. This is compared to an average of 194,000 over the last six months, 257,000 over the last twelve months, and the 2022 average of 399,000 new jobs per month.

Job growth also continues to be revised lower in subsequent reports. For example, June’s originally reported number of 209,000 new jobs has been cut in half to just 105,000 jobs (which is the lowest reading in almost three years). Growth figures for July and August are likely to be revised lower as well. Plus, a deeper look at the data for August shows that part-time workers increased by 32,000, while full-time workers fell by 85,000. All these factors point to a weakening job market.

The Fed has been looking for clear signs that the labor market is softening as they consider further rate hikes. Will this report be enough to convince them to pause at their next meeting? We’ll find out on September 20.