The "small non-farm" added the fewest jobs since 2021, and the market expects policymakers to start cutting interest rates this month

ChainCatcher news, according to Jinshi reports, the number of new jobs added by U.S. companies last month was the lowest since early 2021, further proving that the labor market is shifting to low-speed growth. ADP data shows that private sector employment increased by 99,000 in August, with last month's increase revised down. The latest data is below all expectations.

ADP Chief Economist Nela Richardson said, "After experiencing two years of significant growth, the downturn in the job market has caused hiring rates to fall below normal levels. Wage growth, which slowed significantly after the pandemic, is now stabilizing." Companies are scaling back hiring to cope with high costs and high interest rates. The latest data adds evidence of a slowdown in labor demand, and Federal Reserve officials have stated that they are now more concerned about risks in the labor market compared to inflation. As price pressures have largely receded from the pandemic peak, the market expects policymakers to begin cutting interest rates this month.

Another report released on Thursday showed that as of August, U.S. companies' hiring plans have decreased by 41% compared to the same eight months in 2023. Announced layoff plans fell by 3.7%.