Lead: On Sept. 5, 2025, the U.S. Bureau of Labor Statistics reported that employers added 22,000 jobs in August, a sharp deceleration from July’s 79,000 gain; the unemployment rate inched up to 4.3% as concerns about cooling hiring and policy repercussions grew.
Key Takeaways
- The U.S. added 22,000 payroll jobs in August, below economists’ expectations.
- Unemployment rose to 4.3% but remains historically low.
- June payrolls were revised to a loss of 13,000, the first monthly decline since December 2020.
- Three-month average hiring has fallen to about 28,000 through July from roughly 196,000 earlier.
- Weak readings have increased market expectations of a near-term Federal Reserve rate cut.
- The release is the first since the dismissal of BLS Commissioner Erika McEntarfer and the nomination of E.J. Antoni.
Verified Facts
The Bureau of Labor Statistics’ monthly employment report showed employers added 22,000 nonfarm payrolls in August. That pace represents a marked slowdown from July, when payroll gains were reported at 79,000. The unemployment rate rose to 4.3% in August.
The August release also incorporated a revision for June, moving that month from a previously reported gain to a loss of 13,000 jobs, the first monthly decline recorded since December 2020. Three-month averages highlight the downturn: the three months ending in July averaged about 28,000 jobs added, down from roughly 196,000 in the prior three-month span.
Economists and market participants treat these headline figures and revisions as important signals of labor-market momentum because payroll employment is a central input for growth and inflation assessments. The BLS regularly revises estimates as more source data become available; those methodological revisions can change the short-term picture.
Context & Impact
Monetary policy implications were immediate. Federal Reserve officials, including Chair Jerome Powell, have signaled caution in adjusting policy, but weaker-than-expected employment growth increases the likelihood of an interest-rate cut at the upcoming Federal Open Market Committee meeting. Market-implied odds for a quarter-point cut rose sharply in the days around the report, reflecting traders’ rapid reassessment.
On the political and institutional side, this jobs release is the first full BLS report since President Donald Trump removed Commissioner Erika McEntarfer following last month’s weak data and subsequent revisions. Trump has nominated E.J. Antoni, the Heritage Foundation’s chief economist, as a replacement; Antoni has been a long-standing critic of the BLS and is linked to the Project 2025 policy network.
Market participants will watch incoming data for signs that the slowdown is persistent. If hiring remains soft, it could tip the balance toward an official cut in the federal funds rate; if payrolls rebound, the Fed may keep policy unchanged.
Official Statements
“It has been the honor of my life to serve as Commissioner of BLS alongside the many dedicated civil servants tasked with measuring a vast and dynamic economy. It is vital and important work and I thank them for their service to this nation.”
Erika McEntarfer, former BLS Commissioner (social media)
“The totally groundless firing of Dr. Erika McEntarfer … sets a dangerous precedent and undermines the statistical mission of the Bureau.”
William Beach, former BLS Commissioner (social media)
Explainer
Unconfirmed
- Claims that the BLS deliberately manipulated job numbers have not been substantiated by independent evidence.
- The longer-term effect of recent leadership changes at the BLS on data methodology and independence remains unclear.
Bottom Line
August’s weak payroll gain and prior-month revisions have strengthened expectations that the Federal Reserve may ease policy soon, while also intensifying scrutiny of the BLS after a high-profile personnel change. Short-term market moves and upcoming monthly reports will be decisive for whether this slowdown proves transient or signals a deeper economic softening.