Washington, September 5: The US economy added a mere 22,000 jobs in August, far below the anticipated 75,000, as the unemployment rate edged up to 4.3% from 4.2%, reaching its highest level in nearly four years, according to data released by the Bureau of Labor Statistics (BLS).
The report showed that healthcare and social assistance led job gains, while sectors such as technology, retail, mining, and wholesale trade experienced declines. Roughly 31,000 jobs were added in healthcare, providing a rare bright spot in an otherwise sluggish labor market.
The slowdown has affected major urban tech hubs and manufacturing regions the most. Earlier, employers cut 13,000 jobs in June, marking the first net loss since December 2020.
Wage growth slowed to 3.7%, the lowest since July 2024, and job openings have declined 45% since 2022, reflecting cautious hiring amid trade tensions and economic uncertainty. Another recent report confirmed that, for the first time since the Covid-19 pandemic, there were more unemployed people than available job openings in July, with openings hitting a 10-month low.
The BLS data has faced political scrutiny after President Trump fired BLS Commissioner Erika McEntarfer in August, alleging data manipulation. Trump has nominated E.J. Antoni, Chief Economist at the conservative Heritage Foundation, to lead the agency—a move that has been criticized by many economists for lack of qualifications.
Experts noted that Trump’s global tariffs, high interest rates, and economic uncertainty are weighing on hiring. However, the weak August jobs data has increased expectations of interest rate cuts, with government bond yields dropping sharply. The two-year Treasury yield fell to its lowest level since 2022.
The Federal Reserve now faces mounting pressure to reduce rates at its September 17 meeting, with futures markets signaling a 70% probability of a cut to support employment.
