US job growth increased in August, but the unemployment rate rose to 3.8% and wage gains slowed.

The Labor Department employment data showed 736,000 people entered the job market, raising the participation rate to its highest level in 3-1/2 years.

Economic slowdown fears are likely luring individuals back to work.

July job opportunities fell to the lowest level in nearly 2-1/2 years.

The US central bank’s steep rate hikes are weakening the labor market, with nonfarm payrolls rising 187,000 last month.

Labor market strength was shown by the largest share of industries adding employment in seven months.