Payroll growth slowed in August as employers added 173,000 jobs in a key report that could help the Federal Reserve decide whether to raise interest rates later this month.
The unemployment rate fell from 5.3% to 5.1%, lowest since March 2008.
Economists surveyed by Bloomberg expected employment gains of 218,000, according to their median forecast.
The report is the most significant the Fed will review before its September 16-17 meeting. Until recent financial market turmoil, Fed officials had been signaling there was at least a reasonable chance they would raise the central bank's benchmark rate at the gathering for the first time in nine years.
At least one Fed policymaker indicated last week a rate hike is now less likely, though Vice Chairman Stanley Fischer said economic reports in coming days will be pivotal. Some economists said job gains of at least 250,000 in August were needed to coax Fed policymakers into taking a step that could further roil jittery markets.
Yet the effect Friday's report could have on the Fed's decision is unclear, in part because Labor will revise Friday's August tally twice. Initial estimates in August have been unusually low the past five years because of seasonal factors, with revisions adding an average 77,000 jobs each year.
Other recent reports have suggested job growth last month roughly maintained its solid monthly average of slightly more than 200,000 in 2015. Private payroll processor ADP said businesses added 190,000 jobs in August. And a survey of the service sector showed hiring picked up more slowly last month but was still healthy.
While consumer spending and the recovering housing market have underpinned moderate economic and payroll growth, a strong dollar and low oil prices have hampered exports, factory output and energy investment.
