Federal

U.S. Job Market Stalls as August Employment Report Shows Weakest Hiring in Years

The U.S. labor market delivered a concerning signal of economic weakness on Friday as employers added only 22,000 jobs in August.

The unemployment rate ticked up to 4.3 percent in August, matching levels not seen since September 2021 when the economy was still recovering from pandemic disruptions. With 7.4 million Americans now unemployed, the August figure far exceeded economist expectations of around 75,000-80,000 new jobs.

While healthcare managed to add 31,000 positions, this growth was partially offset by significant losses elsewhere. The federal government shed 15,000 jobs, continuing a decline that has eliminated 97,000 positions since January. Manufacturing lost 12,000 jobs, marking the fourth consecutive month of payroll reductions in the sector, while construction cut 7,000 positions.

Mining, quarrying, and oil and gas extraction declined by 6,000 jobs, and wholesale trade employment continued its downward trend with a loss of 12,000 positions, bringing total losses to 32,000 since May. Transportation equipment manufacturing was particularly hard hit, losing 15,000 jobs partly due to strike activity.

The economy has generated an average of just 85,000 jobs per month in 2025, down from 168,000 monthly in 2024 and a 400,000 monthly average during the 2021-2023 hiring boom. 

June’s employment figures were revised down dramatically, showing the economy actually lost 13,000 jobs that month, marking the first monthly decline since December 2020.

Average hourly earnings rose by 10 cents, or 0.3 percent, to $36.53 in August, bringing the annual wage growth rate to 3.7 percent, the slowest pace since July 2024.

A particularly troubling aspect of the report was the increase in long-term unemployment. The number of Americans jobless for 27 weeks or more has risen by 385,000 over the past year, reaching 1.9 million people who now account for 25.7 percent of all unemployed individuals.

Leave a Comment

Your email address will not be published. Required fields are marked *

*