Hiring continued at a sluggish pace in August and the unemployment rate fell as people dropped out of the labor force, according to the Department of Labor Friday.
They reported that the U.S. economy added 169,000 jobs in August, but say the economy needs at least 200,000 new jobs eachmonth to keep up with population growth.
The Labor Department says the unemployment rate dropped to 7.3 percent, the lowest in nearly five years. But it fell because more Americans stopped looking for work and were no longer counted as unemployed. The proportion of Americans working or looking for work fell to its lowest level in 35 years.
The slowdown in hiring could complicate the Federal Reserve's decision later this month on whether to slow its bond purchases.