Hiring by America’s employers picked up a bit in August from July's sluggish pace, and the unemployment rate dipped for the first time since March.

The U.S. economy added 142,000 jobs in August, while the unemployment rate edged slightly lower to 4.2% from 4.3%, the Labor Department said on Friday. Why it matters: A slowing labor market is a pivotal factor that will help the Federal Reserve determine the size of a highly anticipated interest rate cut later this month.

The American labor market weakened last month as employers added just 142,000 jobs in August — well below analyst estimates of 161,000. Stock market futures plummeted before the opening bell on Friday as the Labor Department also issued downward revisions from July — when the economy added just 89,