The US economy added 130,000 jobs in August, according to the Labor Department, falling short of economists’ expectations of 158,000. The unemployment rate remained unchanged at 3.7%, near a 50-year low.

The report indicated that government hiring, particularly for the 2020 Census, contributed significantly to the job gains. Private sector job creation was weaker, raising concerns about the underlying strength of the economy.

Key sectors

• Healthcare: Continued to add jobs, driven by demand for services.
• Professional and business services: Showed moderate growth.
• Manufacturing: Remained sluggish, reflecting global trade tensions.
• Retail: Experienced further job losses, impacted by changing consumer behavior.

Expert opinions

Economists are divided on the implications of the report. Some believe that the slowdown is a temporary blip, while others see it as a sign of a more significant economic downturn. The Federal Reserve is closely monitoring the data as it considers further interest rate cuts.

The August jobs report adds to the growing uncertainty surrounding the US economic outlook. Trade disputes, global economic weakness, and now slowing job growth are all factors that could weigh on future economic performance.