The U.S. economy added jobs at a slower pace than expected in August, and wages cooled, even as the unemployment rate fell to 4.2%, tying a 29-year low.

The economy added 124,000 jobs last month, fewer than the July gain of 338,000, Labor Department figures showed. The smaller gain in August reflected losses of factory and construction jobs and a gain in service employment that was less than this year's average.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.