U.S. job growth weakened sharply in August while the unemployment rate increased to nearly a four-year high of 4.3 per cent, confirming that labour market conditions were softening and sealing the case for an interest rate cut from the Federal Reserve this month.

The Labour Department's closely watched employment report on Friday also showed that the economy lost jobs in June for the first time in four and a half years. Job growth has stalled, with economists blaming U.S. President Donald Trump's sweeping import tariffs and an immigration crackdown that has reduced the labour pool.

Softness in the labour market is mostly coming from the hiring side. There were more unemployed people than vacancies in July for the first time since the COVID-19 pandemic.

Trump's duties, which have boosted

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