US jobs growth misses forecasts as unemployment rises

Figures could be made worse next month by impact of Tropical Storm Harvey and reduce chances of interest rate rise

The US economy recorded a sharp fall in job creation in August, raising questions over whether the Federal Reserve will raise interest rates before the end of the year.

Economists had expected the US to add about 180,000 jobs over the month. But the latest figures from the Bureau of Labor Statistics showed a marked slowdown on the previous month, with a rise of 156,000 jobs. The figure for July was revised down to 189,000 from an initial 209,000, while for June number was reduced from 231,000 to 210,000, compounding the weaker picture.

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