— The U.S. economy added just 22,000 jobs in August and the unemployment rate rose to 4.3 percent, marking a second consecutive disappointing report that contradicts President Trump’s repeated assertions that the economy is booming.
Key Takeaways
- The economy gained 22,000 jobs in August; June employment was revised down by 13,000.
- Unemployment edged up to 4.3 percent, the highest in almost four years.
- Economists point to tariffs, immigration enforcement and federal spending cuts as primary headwinds.
- President Trump fired Bureau of Labor Statistics chief Erika McEntarfer and nominated E.J. Antoni; the nomination is not yet confirmed.
- Inflation data due next week may show faster price growth, raising stagflation concerns.
- Markets and business leaders face added uncertainty as policy shifts continue.
Verified Facts
The Bureau of Labor Statistics reported an increase of 22,000 payroll jobs in August 2025 and an unemployment rate that ticked up to 4.3 percent. The agency also revised June employment down by 13,000, representing the first net monthly job decline since 2020.
Policy changes this year — including broad import tariffs affecting goods from scores of countries and stepped-up immigration enforcement — have raised costs for many firms and removed workers and customers from some local labor markets. Officials and analysts link those shifts to weaker hiring and softer demand.
The White House removed Erika McEntarfer, the Senate-confirmed head of the BLS, after last month’s weak report and has nominated E.J. Antoni to lead the agency; Mr. Antoni has not been confirmed. Economists across the spectrum criticized the move and warned that politicizing statistical agencies would undermine public trust.
Kevin Hassett, director of the White House National Economic Council, acknowledged the report was disappointing but argued that private-sector investment commitments and recent tax changes will support growth; he also said labor figures may be revised upward in time.
| Measure | Value |
|---|---|
| August payroll change | +22,000 |
| June revision | -13,000 (revised) |
| Unemployment rate | 4.3% |
Context & Impact
Economists point to several linked channels through which the administration’s policies are weighing on hiring: higher tariffs raise input costs and consumer prices; stricter immigration enforcement reduces the available workforce for certain sectors; and federal contracting and grant cuts have rippled into parts of the private sector.
Because businesses face both higher costs and softer demand, some forecasters now warn of a shift toward slower growth combined with persistently elevated inflation — a stagflationary environment that would complicate policy responses.
- Short-term: Firms may pause hiring and investment until tariff and policy uncertainty eases.
- Medium-term: Expected Federal Reserve rate cuts, likely at its meeting later this month, could support a rebound in hiring if inflation moderates.
- Household impact: Consumer sentiment has fallen, and surveys show workers are more worried about job security and finding new employment.
“We’ve got a private sector caught between higher costs and reduced demand,” remarked Gregory Daco, chief economist at EY-Parthenon.
Gregory Daco / EY-Parthenon
Official Statements
“The numbers are a disappointment,” said Kevin Hassett, while the White House pointed to corporate investment pledges and recent tax measures as reasons for optimism.
White House National Economic Council
Unconfirmed
- The president’s assertion that the data were deliberately “rigged” has not been substantiated; no evidence has been presented that statistical procedures were manipulated.
- Predictions that job figures will be materially revised upward remain speculative until revisions are published.
Bottom Line
Two consecutive weak job reports have undercut claims of an expanding labor market and heightened concern among economists about the combined effects of tariffs, immigration policy and federal spending decisions. While some expect modest growth to return next year as uncertainties abate and the Fed eases policy, near-term risks to hiring and real incomes have risen.