CNN
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The US labor market recovered in August after a surprisingly weak employment report was released the previous month.

According to data released Friday by the Bureau of Labor Statistics, employers added an estimated 142,000 jobs last month, stronger growth than July’s troubling low, which was revised down to 89,000 from 114,000.

The unemployment rate fell from 4.3% to 4.2%.

According to FactSet’s consensus estimates, economists had expected a net increase of 160,000 jobs and a decline in the unemployment rate to 4.2%.

The total for August is consistent with employment growth over the past three months, but is well below the average monthly gain of 202,000 over the past 12 months.

The labor market has cooled significantly over the past year – a development that is entirely expected as labor supply and demand are better balanced after the seismic shock of the Covid-19 pandemic. Nevertheless, concerns have grown in recent months that employment growth is not only slowing but even worsening.

July’s shockingly weak employment report fueled fears that the labor market could collapse and possibly plunge the economy into recession.

Although the increases for July were revised downwards even further and those for June were cut by 61,000 to 118,000, the report for August was comparatively solid and stronger.

However, given the revisions and the fact that the monthly result for August was below expectations, Friday’s report does not yet provide a clear signal about the outlook for the labor market or the economy.

“Today’s jobs report shows that this summer’s ‘great wait and see’ continues. Employers and employees are waiting for signs of improvement, not speculation about forecasts,” said Becky Frankiewicz, president of ManpowerGroup North America.

This story is evolving and will be updated.