WASHINGTON, D.C. – The U.S. Labor Department reported only 96,000 jobs were created in August, less than the 125,000 that had been forecast.

The jobless rate edged down to 8.1 per cent from 8.3 per cent but that was because of fewer people looking for work.

And to top it all off, it added that 41,000 fewer jobs had been created in June and July than previously reported.

The poor showing raised hopes that the U.S. Federal Reserve will embark on another round of economic stimulus to help support the economic recovery.

Previous easing measures by the Fed have supported financial markets.

The Fed’s intentions could become clearer next week when the central bank holds its next interest rate meeting.