(CNN) - Hiring continued at a sluggish pace in August and the unemployment rate fell as people dropped out of the labor force, according to the Department of Labor.
They also said the U.S. economy added 169,000 jobs in August.
That's an improvement from the 104,000 jobs added in July.
However, it's still slower than the average pace of job growth over the past year.
The economy needs at least 200,000 new jobs a month to keep up with population growth.
The unemployment rate also dipped to 7.3 percent, but that drop came from people who stopped looking for work.
Now only 63.2 percent of Americans are job hunting, that's the lowest rate since august 1978.