In August, the U.S. private sector created only 99,000 jobs, significantly lower than the anticipated 140,000, marking the weakest month for job growth since January 2021.

This figure represents a decline from the revised gain of 111,000 jobs in July, raising concerns about a potential rise in unemployment.

Jerome Powell, the Fed chair, has expressed confidence that inflation is on a sustainable path back to the 2% target, despite previous rate hikes aimed at controlling it.

Sectors that reported job losses included professional and business services, manufacturing, and information services, while education and health services saw some gains.

The slowdown in hiring is further underscored by the fact that private payrolls have not seen such low growth in over three and a half years.

Wage growth has stabilized, with annual pay rising by 4.8%, the slowest pace recorded in three years.

Job vacancies in the U.S. have fallen to their lowest level since January 2021, indicating a broader labor market slowdown.

Additionally, August saw the second-highest level of job cuts since 2009, reflecting increasing economic uncertainty.

In light of these weakening job figures, the Federal Reserve is expected to consider lowering interest rates during its upcoming meeting on September 17-18.

The unemployment rate is projected to decrease slightly to 4.2% from 4.3% in July, which was close to a three-year high.

Nela Richardson, chief economist at ADP, noted a downward trend in the job market, leading to slower hiring after two years of significant growth.

As of July, inflation was recorded at 2.5% year-on-year, nearing the Fed's target, while the current interest rate range stands at 5.25% to 5.50%.