the unemployment rate rose to 3.8% last month against expectations that it would remain unchanged at 3.5%, while wages advanced 0.2% on a monthly basis, moderating from a 0.4% rise in July.
Nonfarm payrolls increased by 187,000 jobs in August, against expectations of 170,000 additions, according to a Reuters poll of economists. Data for July was revised to show 157,000 job additions instead of the 187,000 additions reported before. Traders' bets that the Fed will keep rates unchanged in September stood at 93%, while bets of a pause in November rose to 63% after the jobs report, compared with 44.5% a week earlier, according to CME Group's FedWatch tool.
"The data is pretty mixed. The initial reaction up is because the market has been very focused on not seeing any outliers that suggest rate rises are likely to keep coming," said Rick Meckler, partner at Cherry Lane Investments.The payrolls report follows recent data showing a fall in job openings and softer-than-expected private employment growth, both of which signaled weakness in the labor market.