The US economy added fewer than 75,000 jobs in August, the Labor Department reported on Friday, well below the roughly 110,000 forecast by economists surveyed by Reuters. The unemployment rate rose to 4.4%, signalling a cooling labour market.

The Bureau of Labor Statistics also included downward revisions to prior months, extending a pattern that has raised concerns about hiring durability. Wage growth, measured by average hourly earnings, moderated on a year-over-year basis, easing inflation concerns.

The soft data hardened expectations that the Federal Reserve will cut its benchmark interest rate at its September 16-17 meeting. Interest-rate futures tracked by CME Group's FedWatch tool moved to price a quarter-point reduction as all but certain, with some traders positioning for a larger half-point move.

Equity futures rose after the release as investors bet on cheaper borrowing costs, while yields on the two-year Treasury note fell. President Donald Trump renewed his calls for the Fed to lower rates, arguing the weak report vindicated his pressure on Chair Jerome Powell.

The figures arrive as companies including Uber announced fresh layoffs this week, with the ride-hailing group cutting 10% of its global workforce. Fed policymakers had signalled they were watching for labour-market deterioration before easing policy.