CNBC's Rick Santelli joins 'Squawk Box' to break down the August jobs report, which came in less than expected, a further sign of hiring slowdown.

US non-farm payrolls increased by 22,000 in August, a figure lower than anticipated by analysts. The unemployment rate rose to 4.3%, reaching its highest level since 2021. Average hourly earnings grew by 0.3% for the month and 3.7% year-over-year, both slightly below expectations and recent trends. The labor force participation rate edged down to 62.3%, continuing a gradual decline seen throughout the year. The underemployment rate (U6) also climbed to 8.1%, marking its highest point this year.

Interest rates responded to the data, with the 10-year Treasury yield hovering around 4.11% after the report. The figures suggest a cooling labor market, with both employment growth and wage gains showing signs of slowing.

Payrolls rose 22,000 in August, less than expected

We are just a few seconds away from that August employment number. Rick Stanstellia is standing by, he's been watching all of this as we get ready to go to this number. Rick, we're going to send it over to you. Wow, and the data is actually coming across the wires on time. Good job, BLS. Change in non-farm payrolls for the August job, job, jobs report, 22,000, 22,000. Interest rates started dropping long before this data was released, and last month, well, a subtle revision to 79,000, and if you look at the two-month revision, thank goodness it's not minus 258,000 like it was last month. Comes out to minus 21,000. Of everybody, of course, is trying to find out what's going on with the unemployment rate. We'll do that next. The unemployment rate comes in at, dun, dun, dun, dun, dun, comes in at 4.3, 4.3. So it moved higher. Now here's something interesting. What's the comp? We haven't had a rate that high going all the way back to 2021 when it was 4.5. So you can see that the way it dropped really was quite incredible. We went from 4.2 to 4.5 in November, October period of 2021. Now let's go at average hourly earnings up three-tenths, very solid, very much as expected. If we look at year-over-year, 3.7, losing some steam, 3.8 was expected, 3.9 was in the rearview mirror. So 3.7, that would definitely take us back also to mid-2021 to find a comp there. Hours worked. Many people are counting on this to give them some early clues, thinking, wait, hours are going to drop a bit before people potentially get fired. There's two ways to look at it. Maybe you give your remaining people more hours before you hire people. I think it could go either way. It comes in at 34.2. That would be the second lowest of the year we've had several, 34.1 is where we started the year. So 34.2 kind of figures right in there. And finally, let's look at some of the other numbers we like to pay very close attention to. Let's start with the labor force participation rate, and this has not been a good thing. It really has been moving down. We were at 62.6 at the beginning of the year. We're now at 62.3. That's one-tenth better than expected, one-tenth better than the rearview mirror, equals where we were in June. To find a higher one, you have to go to May at 62.4. As I said, it's been steadily moving lower. And finally, we go from 4.3, which is known as U3, the unemployment rate, to U6, which is called the underemployment rate. That zoomed up here also to 8.1 percent. 8.1 percent would be the high of the year. Matter of fact, once again, where are we going to find a comp? We're going to the fall of 2021. Interest rates, when about five minutes in front of the number, we're hovering around 4.13 and a 10. They got down as low as what looks like on the chart, 4.09. We're currently hovering at 4.11. Maybe the best bit of information I could toss out there is we closed at 4.23 last week, and the low close of the year is like 3.9999. We'll call it 4 percent. That's what everyone's going to be watching, not only on an intraday basis, but more importantly, on a closing basis. And once again, I don't care how soft the data is, debt and deficits may weigh in on if we can actually close under that very key level. Back to the panel.

The White House said the U.S. is sending 10 F-35 fighter jets to Puerto Rico. It comes as the Defense Department confirmed that two armed Venezuelan F-16 fighter jets flew over a U.S. Navy ship in the region on Thursday.

Washington

U.S. to send F-35 fighter jets to Puerto Rico amid Venezuela tensions

President Trump signed an executive order to start the process of renaming the Department of Defense to the Department of War, restoring a name the agency last held in the late 1940s.

Trump orders Defense Department be renamed as Department of War

Xi and Kim, along with top officials from their countries, met on Thursday at Beijing’s Great Hall of the People a day after Kim attended a Chinese military parade alongside other foreign leaders including Russian President Vladimir Putin.

Beijing

China’s Xi and North Korea’s Kim meet in Beijing, pledge deeper ties

Two Venezuelan fighter jets flew over the USS Jason Dunham, multiple Defense Department officials confirm, calling the action a "show of force." CBS News' Willie James Inman and Charlie D'Agata report.

Caracas

Two Venezuelan fighter jets fly over U.S. Navy ship, officials confirm

A massive Immigration and Customs Enforcement raid at a Hyundai manufacturing site in Georgia led to hundreds of immigrants being detained for apparently living and working in the U.S. illegally.

Savannah

Massive ICE raid at Hyundai site leaves 475 detained in Georgia

Israel targeted a high-rise building in Gaza City, the military said in a statement. As the world braces for Israel's major military operation to seize Gaza's largest city, Hamas released a video purportedly showing two hostages, including one calling on Israel not to carry out its planned Gaza City offensive.

Jerusalem

Middle East Conflict

Israel strikes Gaza City high-rise building, Hamas releases another hostage video

US Secretary of State Marco Rubio is wrapping up a two-day trip to Latin America. It comes as the countries in the region watch the Trump administration step up military activity in the area, to combat drug trafficking and illegal migration.

Quito

U.S. mulls military base in Ecuador

A powerful aftershock struck eastern Afghanistan late on Thursday night. More than 2,200 people have already died the quake. Rescue crews are still searching remote villages, but rescue efforts are hampered by rough terrain and aftershocks. The World Food Programme says food stocks are running low and could be exhausted within weeks.

Kabul

Afghanistan quake death toll passes 2200 as food supplies run low

What happens in Ukraine once the war with Russia is over? France tells President Volodymyr Zelenskyy that 26 nations are now ready to offer security guarantees, including the possible deployment of foreign troops as part of a post-war peace arrangement.

Paris

Ukraine Invasion

Ukraine's European allies agree security guarantees

CEOs from some of the nation's biggest tech companies sat down for a dinner with President Trump on Thursday. Among those present were Tim Cook, Sam Altman, Bill Gates and Mark Zuckerberg.

Trump hosts Mark Zuckerberg, Bill Gates and other tech CEOs

U.S. President Donald Trump had a call with Ukrainian President Volodymyr Zelenskyy and other European leaders Thursday about Russia's war in Ukraine. CBS News White House reporter Olivia Rinaldi has more.

Trump speaks with Zelenskyy, pushes Europe to stop buying Russian oil

"With infinite sorrow, the Armani Group announces the passing of its creator, founder, and tireless driving force: Giorgio Armani," the fashion house said in a statement on Thursday.

Milan

'King' of Italian fashion Giorgio Armani dies at 91

A federal judge on Wednesday ruled that U.S. President Donald Trump's administration unlawfully terminated about $2.2 billion in grants awarded to Harvard University and can no longer cut off research funding to the prestigious Ivy League school.

Cambridge

Trump admin unlawfully cut Harvard's funding, U.S. judge rules

Russian President Vladimir Putin has delivered a statement after meeting leaders on the sidelines of the military event in Beijing. He spoke about Russian security interests, and the Ukraine war.

Moscow

Putin wraps China visit with gas deal, calls for Ukraine peace talks

Hope is fading of finding survivors in the rubble of homes devastated by a powerful earthquake in eastern Afghanistan over the weekend that killed more than 1,400 people, as emergency services struggle to reach remote villages.

Kunar

Hope fades for finding survivors after Afghan quake kills over 1400

Portuguese authorities say at least 15 people died after a streetcar derailed and crashed in the capital of Lisbon. CBS News senior foreign correspondent Imtiaz Tyab has the latest.

Lisbon

Iconic streetcar in Portugal's Lisbon derails, 15 killed

Democratic Rep. Ro Khanna, along with Republican Reps. Thomas Massie and Marjorie Taylor Greene, held a news conference on Wednesday with survivors of Jeffrey Epstein and Ghislaine Maxwell's sexual abuse. CBS News' Caitlin Huey-Burns has more details.

Epstein survivors add voices to calls for transparency

Israel's central intelligence agency, Shin Bet, said that it thwarted an assassination plot by Hamas against the country's right-wing minister of national security, Itamar Ben-Gvir, Reuters reports.

Tel Aviv-Yafo

Israel reportedly thwarted plot to assassinate right-wing minister

In California on Tuesday, a jury took less than an hour to clear Cardi B of assault allegations made in a $24 million civil lawsuit. A security guard claimed the rap star attacked her in 2018.

Los Angeles

Cardi B wins civil case against security guard

Secretary of State Marco Rubio said on Tuesday that the U.S. military struck a boat apparently carrying drugs from Venezuela. CBS News' Charlie D'Agata has the latest details.

Trump says U.S. struck drug-carrying boat from Venezuela

China's Xi Jinping welcomed Russian President Vladimir Putin and North Korea's Kim Jong Un, along with other world leaders, for a huge military parade showing off new technology.

Vladimir Putin, Kim Jong Un attend China's massive military parade

A Republican-led U.S. House of Representatives committee said it released more than 33,000 pages of files on the disgraced financier and convicted sex offender Jeffrey Epstein, as party leadership looked to end a push by a bipartisan pair of lawmakers to force a vote on the matter.

U.S. House committee releases thousands of Epstein files

French Prime Minister Francois Bayrou last week called for parliament to hold an earlier-than-expected vote of confidence in him. Next week’s ballot could lead to the collapse of his centrist government and prompt a period of further instability in the European Union’s second biggest economy.

France’s PM faces crucial confidence vote amid political turmoil

Tens of thousands of reservists began to report for duty on Tuesday for a new Israeli offensive to seize Gaza City, which Prime Minister Benjamin Netanyahu wants to accelerate despite warnings from senior ranks.

Israel calls up reservists as military chief clashes with ministers

The House Oversight Committee on Tuesday released over 33,000 pages of documents related to sex offender Jeffrey Epstein.

33,000 pages of Jeffrey Epstein documents released by House panel

Belgium joins the ranks of Australia, France, Canada and the UK, all who have pledged to recognize a Palestinian state at the UNGA next week in a bid to ramp up pressure on the Israeli government to end the war in Gaza.

Brussels

Belgium to recognize Palestine at the UN General Assembly

A powerful 6.0 magnitude earthquake in eastern Afghanistan killed at least 1,400 people, according to the Afghan Red Crescent Society. Thousands more were  injured.

At least 1,400 killed in powerful Afghanistan earthquake

The death toll from Afghanistan's worst earthquake in years jumped to over 1,100 with thousands more injured, as difficult terrain hindered rescue efforts in isolated villages of the country's mountainous eastern region.

Breakdown