The Financial Post reports in its Saturday edition that in August, hiring by America's employers improved slightly from the previous month, and the unemployment rate decreased for the first time since March. An Associated Press dispatch to the Post reports that employers added 142,000 jobs, up from 89,000 in July, according to the Labor Department. The unemployment rate dropped to 4.2 per cent from 4.3 per cent in July. These numbers suggest that the job market may be slowing down due to high interest rates, but it is still growing. Despite this, many employers are responding to resilient consumer spending. A survey of service sector companies, such as banks, restaurants and health-care providers, showed an increase in sales and hiring. Many people with jobs are feeling secure because there are very few layoffs. However, the rate of new hiring has slowed down, making it more difficult to find a job. At the same time, inflation is gradually dropping back to the Federal Reserve's goal of 2 per cent. This sets the stage for the Fed to lower its key interest rate from a 23-year high. Based on Friday's report, it is likely that the central bank will announce a quarter-point rate cut when it meets next on Sept. 17-18.