The US added 169,000 new jobs in August which is fewer than Analysts had expected about 180,000 jobs to be added in August. But the US Labor Department said this was because more Americans stopped looking for work.
The U.S. dollar drifted lower against other major currencies on Friday, as data showed that the country added fewer jobs than expected in August, even though jobless rate fell.
The report also showed a notable downward revision to the pace of job growth in July, with the revised data showing an addition of 104,000 jobs compared to the previously reported increase of 162,000 jobs.
Despite the weaker than expected job growth, the unemployment rate dipped to 7.3 percent in August from 7.4 percent in July. The unemployment rate had been expected to come in unchanged.
With the unexpected decrease, the unemployment rate fell to its lowest level since a matching 7.3 percent in December of 2008.
US economic data as of late has been mixed, with US second-quarter GDP being revised upwards to 2.5% from 1.7% and positive housing data.
However, retail sales have been sluggish during the back-to-school season. Several large retailers, including Wal-Mart and Macy’s, have warned of slowing consumer demand.
US consumers make up 70% of US economic activity.