According to the Department of Labor, non-farm payrolls grew by 142,000 last month.

Economists had forecast an increase of 161,000, according to a poll by Dow Jones Newswires.

Furthermore, non-farm payrolls figures for the previous two months combined were revised down by a combined 86,000, to 89,000 and 118,000, respectively.

Payroll growth was split between 118,000 in the private sector and 24,000 in government.

By sectors, manufacturing shed 24,000 persons but private services providers added 108,000.

Average hourly earnings however rose by a strong 0.4% month-on-month (consensus: 0.3%).

As well, the rate of unemployment, which is derived from a separate survey than that for the payroll numbers, ticked lower to 4.2% (consensus: 4.2%).

The labour force participation rate was unchanged at 62.7%.

"The 142,000 gain in non-farm payroll employment in August was probably just enough to tip the Fed in favour of a measured 25bp rate cut this month, rather than a more dramatic move, but the labour market is clearly experiencing a marked slowdown," said Paul Ashworth, chief North America economist at Capital Economics.

-- More to follow --