U.S. Job Growth Slows to Just 22,000 in August, Unemployment Hits 4.3%/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. added just 22,000 jobs in August, the weakest gain this year, while unemployment rose to 4.3%, the highest since 2021. Economists blame lingering Federal Reserve rate hikes and uncertainty from President Trump’s tariffs and trade policies. The slowdown intensifies concerns after Trump fired the Bureau of Labor Statistics chief over earlier weak reports.
U.S. Job Growth Slows Quick Looks
- Only 22,000 jobs added in August, down from 79,000 in July.
- Unemployment rose to 4.3%, highest since 2021.
- Trump fired BLS chief Erika McEntarfer after July’s weak data.
- Pending Senate confirmation, E.J. Antoni nominated as replacement.
- Economy averaged 85,000 jobs/month in 2025, half of 2024’s pace.
- Healthcare and social assistance produced 80% of new jobs.
- 892,000 job cuts announced this year, exceeding 2024 total.
- Job market uncertainty tied to Trump’s tariffs and trade policies.
- Economists warn of a “cracking labor market.”
- Declining survey response rates complicate accurate jobs reporting.
U.S. Job Growth Slows to Just 22,000 in August, Unemployment Hits 4.3%
Deep Look
WASHINGTON (AP) — The U.S. job market weakened further in August, with employers adding only 22,000 positions, the smallest monthly increase this year. The Labor Department reported Friday that unemployment rose to 4.3%, marking the highest level since 2021 and intensifying concerns that the labor market is losing momentum.
Trump Shrugs, Then Reacts
The slowdown followed a July report that triggered political turmoil. After job gains of just 79,000, President Donald Trump lashed out at the Bureau of Labor Statistics (BLS), firing its chief Erika McEntarfer and accusing her—without evidence—of manipulating data to hurt him politically.
Trump has nominated E.J. Antoni, a partisan ally, to lead the bureau, though the August figures were compiled under acting commissioner William Wiatrowski, a career official. Economists widely say BLS data collection is insulated from political interference.
Speaking Thursday night at a dinner with top tech executives, Trump downplayed expectations: “The real numbers are going to be whatever it is, but will be in a year from now.”
Labor Market Losing Steam
Economists point to two major drags on hiring:
- The delayed effects of the 11 interest rate hikes enacted by the Federal Reserve in 2022–2023.
- Ongoing uncertainty from Trump’s trade wars and tariffs, which leave business managers hesitant to hire or expand.
So far in 2025, job creation has averaged 85,000 per month, compared to 168,000 in 2024 and a robust 400,000 monthly pace during 2021–2023, when the U.S. economy bounced back from pandemic shutdowns.
“The labor market is showing signs of cracking,” said Heather Long, chief economist at Navy Federal Credit Union. “It’s not a red siren alarm yet, but the warning signals are growing.”
Layoffs Rising, Hiring Narrowing
Indicators of stress are mounting. Weekly jobless claims—a proxy for layoffs—rose to their highest level since June, though still within a historically normal range.
Meanwhile, employers announced more than 892,000 job cuts through August, surpassing the 761,000 cuts reported for all of 2024, according to outplacement firm Challenger, Gray & Christmas.
Hiring has also grown increasingly concentrated. Nearly 80% of private-sector job gains in 2025 have come from healthcare and social assistance, a sector covering hospitals, nursing homes, and childcare. Other industries remain largely stagnant.
Revisions Deepen Concerns
Adding to the unease, July’s weak hiring report included downward revisions to earlier months. Revisions to May and June erased 258,000 jobs from payrolls, cutting average monthly gains between May and July to just 35,000.
Such revisions are routine, reflecting late or corrected survey responses. Still, they shook financial markets and inflamed Trump, who has tied his presidency closely to economic performance.
Challenges in Data Collection
The reliability of labor market data is under new scrutiny, with response rates to government surveys dropping significantly. A decade ago, about 60% of companies participated. Today, only 40% respond, making revisions more frequent and volatility more likely.
“It’s an international problem,” said William Beach, BLS commissioner from 2019 to 2023. “If you can’t compel completion in Russia, you can’t compel it anywhere.”
Looking Ahead
Economists warn the labor market is entering a fragile phase. While not yet in recession territory, rising layoffs and slowing job creation suggest employers are growing cautious. With Trump’s trade battles clouding the outlook and interest rates still high, the coming months may test the resilience of U.S. workers and policymakers alike.
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