US Non-Farm Payrolls Beat Expectations in August

The US August non-farm payrolls report shows a slight beat with 187,000 jobs added, but the unemployment rate increased from 3.5% to 3.8%. The participation rate also rose to 62.8%. The two-month net revision was negative, indicating a downward trend in job growth. Average hourly earnings were slightly lower than expected, suggesting the Federal Reserve may have more room to pause on interest rate hikes. The reaction in the markets sees the US dollar and Treasury yields declining, while equities are rising.