AlQa'dah 20, 1436, Sep 4, 2015, SPA -- U.S. job creation slowed in August, but the national unemployment rate fell to a 7-year low, the government reported Friday in a key piece of evidence for the Federal Reserve (Fed) in deciding whether to raise interest rates from record lows later this month. The Labor Department said employers added 173,000 jobs last month, a significant slowdown from the revised 245,000 jobs created in July. It was the smallest employment gain in five months. Job gains were spread across nearly all sectors of the economy last month. Construction payrolls rose 3,000 following the 7,000 jobs added in July. However, manufacturing jobs fell 17,000 despite strong demand for autos, and mining and logging employment fell by 10,000 jobs due to the sharp drop in oil prices. The unemployment rate fell to 5.1 percent in August—the lowest since April 2008—from 5.3 percent the previous month. The decline brought it into the range that most Fed officials believe is consistent with a low but steady rate of inflation. A broad measure of joblessness that includes people who want to work but have abandoned searching and those working part-time because they cannot find full-time employment fell to 10.3 percent, the lowest since June 2008, from 10.4 percent in July. While Friday's report may not change views that the U.S. economy remains vibrant amid volatile global financial markets and slowing growth in China, it could make Fed officials hesitant to raise interest rates at their next policy meeting on September 16 and 17. After three years of solid job growth that has put almost 8 million Americans back to work, Fed officials likely are satisfied with the job market's progress. After the central bank starts raising borrowing rates, the effects will ripple through the economy. Americans could face higher costs for mortgages and other loans, though the increases could be modest and gradual.
