US jobs report may rule out Federal Reserve rate hike

US employment growth slowed more than expected in August after two straight months of robust gains and wage gains moderated, which could effectively rule out an interest rate increase from the US Federal Reserve this month.

Nonfarm payrolls rose by 151,000 jobs last month after an upwardly revised 275,000 increase in July, with hiring in manufacturing and construction sectors declining. The unemployment rate was unchanged at 4.9%.

The report comes on the heels of news that the US manufacturing sector contracted in August, which had already cast doubts on an interest rate hike at the Fed’s policy meeting later this month.