Catenaa, Friday, September 05, 2025- US economy added just 22,000 jobs in August, indicating a slowdown in labor market conditions and boosting expectations of a rate cut by the Federal Reserve.
The US economy added 22,000 jobs in August, down from 79,000 in July, the Bureau of Labor Statistics said Friday. That was well short of the 75,000 jobs forecasters had expected.
The unemployment rate ticked up to 4.3%, up slightly from the month prior.
Private-sector employment grew by 38,000 jobs, driven by a gain of 46,800 jobs in healthcare and social assistance. Federal government employment declined by 15,000 jobs in August.
The bureau also downwardly revised its previous estimate for job creation in June to a loss of 13,000 jobs, rather than the addition of 14,000 jobs initially reported. It was the first time since December 2020 that the US economy had negative job growth.
According to surveys and other economic indicators, many employers have put hiring plans on hold as tariffs have pushed up prices and squeezed consumer budgets.
Although businesses have mostly avoided mass layoffs so far, the slowdown has raised concerns among economists and policymakers that the currently low unemployment rate could rise significantly.
President Trump fired BLS Commissioner Erika McEntarfer after the August 1 report and claimed in a social-media post that the government’s jobs numbers had been rigged to make him look bad.
Trump nominated conservative economist Erwin John “E.J.” Antoni as McEntarfer’s replacement. He will have to be confirmed by the Senate.
Meanwhile, Federal Reserve officials are increasingly concerned about weakness in the labor market, with Fed Chair Jerome Powell citing it as a potential reason to cut interest rates this year. Fed officials are scheduled to meet later this month.
