The US labour market is expected to show further cooling when the Labor Department releases its August employment report on Friday. Economists are forecasting nonfarm payroll gains well below the level needed to hold unemployment steady.

The report follows Tuesday's Job Openings and Labor Turnover Survey, which showed vacancies rising modestly to 7.3 million in July. The broader trend of gradual labour-market softening remains intact. Goldman Sachs and Bank of America have projected payroll gains between 75,000 and 110,000, with the unemployment rate holding near 4.2 to 4.3 per cent.

A weaker headline number would strengthen the case that the Federal Open Market Committee, chaired by Jerome Powell, will lower its benchmark rate by a quarter point at its September 15-16 meeting. Futures markets tracked by CME Group have priced in a high probability of a cut, with traders watching wage growth and revisions to prior months for confirmation.

Investors will scrutinise average hourly earnings and downward revisions to previous months, which have repeatedly cut prior job counts. Persistent revisions would signal the labour market is weaker than initial data suggested, adding pressure on the Fed to ease policy despite tariff-driven cost pressures on employers.

Oxford Economics said a print below 100,000 combined with a rising unemployment rate would leave little doubt about a September cut. A stronger figure could revive debate over the pace of easing into the autumn.