U.S. payrolls grew by 142,000 in August, less than expected

The U.S. economy created slightly fewer jobs than expected in August, reflecting a slowing labor market while also clearing the way for the Federal Reserve to lower interest rates later this month.

Nonfarm payrolls expanded by 142,000 during the month, down from 89,000 in July and below the 161,000 consensus forecast from Dow Jones, according to a report Friday from the Labor Department's Bureau of Labor Statistics.

At the same time, the unemployment rate ticked down to 4.2%, as expected.

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