The data released by the Bureau of Labor Statistics on Friday showed that the number of non farm jobs in the United States increased by 142000 in August, while the data for the previous two months were revised downwards, with a cumulative decrease of 86000 in non farm jobs in June and July. The unemployment rate dropped to 4.2% in August.

The employment growth in August is consistent with the average employment growth in recent months, but lower than the average monthly growth rate of 202000 in the previous 12 months.

After the data was released, US bond yields declined, S&P 500 index futures continued to decline, and the decline in the US dollar widened.

The report shows that the job market is losing momentum. Although layoffs are still largely suppressed, many companies are delaying expansion plans due to high borrowing costs and uncertainty before the November presidential election. The recruitment of healthcare and social assistance departments has driven the growth of employment. The recruitment numbers in the construction industry and government departments have also increased. The diffusion index, which measures the breadth of employment growth, has increased. The participation rate for August remained unchanged at 62.7%. The participation rate of workers aged 25-54 has decreased for the first time since March.

Although the unemployment rate has decreased, the recruitment in August in the United States remains lukewarm, which may exacerbate the current debate on how much the Federal Reserve should cut interest rates.

Interest rate futures traders expect a probability of about 55% for the Federal Reserve to cut interest rates by 50 basis points in September, and a probability of 45% for a 25 basis point rate cut.

Nick Timiraos, the spokesperson for the Federal Reserve, stated that the non farm payroll report may provide a clear signal about the magnitude of the Fed's first rate cut, with market pricing immediately rising to 90%, whether it is 25 basis points or 50 basis points. However, this non farm payroll report did not effectively address this issue. Currently, the market is pricing a "split" between a 25 or 50 basis point interest rate cut. The overall non farm payroll data is not bad enough to turn the benchmark expectation into a 50 basis point rate cut, but considering the revised data, it is not convincing enough to completely dispel speculation of a larger rate cut.

The Wall Street Journal believes that the latest non farm payroll report has not clearly eliminated the uncertainty of whether Federal Reserve officials will cut interest rates by a more traditional 25 basis points or a larger 50 basis points.

MATT ROWE, Head of Cross Asset Strategy Portfolio Management at Nomura Capital Management, commented on the August non farm payroll: "These numbers are in line with market expectations. The unemployment rate remains at a relatively low level of 4.2%. This does not indicate some kind of catastrophic collapse in the labor market. In addition, hourly wages have not decreased. One thing people are concerned about is whether working hours have been reduced from the perspective of employers, which seems not to be the case. Today's data does not look like an economic recession is coming. It looks like the economy is slowing down, not a disaster is about to come. The market will like this. Today, I think we will see the market rebound at the opening. What the market will get from it is clear cover for the Fed to cut interest rates and a path for more than one rate cut... If we were to cut interest rates today... I would be surprised if it didn't close with a profit

Jeffrey Rosenberg, Senior Portfolio Manager at BlackRock: The danger is that if the Federal Reserve's easing this month is 50 basis points, it could imply concerns about the economy rather than reassuring that policymakers are taking timely action to avoid a recession.

Financial Blog Zero Hedge Review for Non Farm Payrolls in August: Today's employment report has both good and bad news - first of all, the bad news: the number of salary earners in August was 142000, slightly lower than the expected 165000, but a significant increase from the downward revised 89000 in July. However, the good news is that although the salary figures did not meet expectations, the unemployment rate actually dropped from the key "Sam's Rule trigger" level of 4.3% to 4.2%, which is in line with expectations. Therefore, overall, the numbers could have been better, but certainly not so bad as to trigger a 50 basis point rate cut within two weeks.

Analyst Childe Freeman said that once we take into account the correction in the first few months, we will confirm that the US employment data has clearly weakened, but the decrease in unemployment rate is a relief. There is no convincing reason for a 25 basis point to 50 basis point rate cut, but there is nothing to stop the cyclical push for a more bearish outlook for the US dollar. In this regard, whether the Federal Reserve starts its interest rate cut cycle from 25 basis points or 50 basis points will not change the rules of the game.

DAKOTA WEALTH, Senior Portfolio Manager, commented on the August non farm payroll: "The market, like everyone else, is struggling to digest these news. The initial rise in futures was based on the unemployment rate being basically in line with expectations, lower than previous reports, but when they see figures such as non farm employment, they will find that the number of new jobs added is lower than expected. Then the previous correction value decreases, which actually indicates that the economy is slowing down." I don't think this is a sign that the economy is collapsing, but it indicates that the economy is slowing down. This means cutting interest rates by 25 basis points. I don't think more measures need to be taken at this time. "Those who originally hoped to cut interest rates by 50 basis points may feel disappointed, but they must know that it's best to be cautious about their wishes