{"id":1520,"date":"2025-09-06T05:33:04","date_gmt":"2025-09-06T05:33:04","guid":{"rendered":"https:\/\/readtrends.com\/en\/us-labor-august-slowdown\/"},"modified":"2025-09-06T05:33:04","modified_gmt":"2025-09-06T05:33:04","slug":"us-labor-august-slowdown","status":"publish","type":"post","link":"https:\/\/readtrends.com\/en\/us-labor-august-slowdown\/","title":{"rendered":"U.S. Labor Market Stalled in August as Job Growth Nears Zero"},"content":{"rendered":"<article>\n<p><time>September 5, 2025<\/time> \u2014 The U.S. labor market slowed sharply in August: payrolls rose by only 22,000, the unemployment rate edged up to 4.3 percent, and June payrolls were revised down by 13,000, according to the monthly government report.<\/p>\n<h2>Key Takeaways<\/h2>\n<ul>\n<li>Employers added 22,000 jobs in August, far below consensus forecasts.<\/li>\n<li>The unemployment rate increased to 4.3 percent while average hourly wages grew 3.7% year over year.<\/li>\n<li>June was revised to a net loss of 13,000 jobs \u2014 the first monthly decline since December 2020.<\/li>\n<li>Health care was the largest gainer (+31,000); manufacturing lost 12,000 jobs and is down 78,000 over the year.<\/li>\n<li>Federal employment fell by 15,000 in August and has declined by 97,000 since the start of the year.<\/li>\n<li>Broader slack measures rose: the U-6 underemployment rate reached 8.1% and long-term unemployed totaled 1.9 million.<\/li>\n<li>The data strengthen expectations that the Federal Reserve will begin cutting interest rates soon.<\/li>\n<\/ul>\n<h2>Verified Facts<\/h2>\n<p>The Bureau of Labor Statistics report for August showed nonfarm payroll employment increased by 22,000. That reading was substantially below private forecasts and came alongside a small uptick in the official unemployment rate to 4.3 percent. Average hourly earnings rose 3.7 percent from a year earlier, the slowest annual gain since July 2024.<\/p>\n<p>Revisions to prior months reduced headline job growth: June\u2019s employment count was revised to a net loss of 13,000 jobs, the first monthly decline since December 2020. Combined revisions lowered the total for the previous two months by 21,000 jobs.<\/p>\n<figure>\n<table>\n<thead>\n<tr>\n<th>Sector<\/th>\n<th>August change<\/th>\n<th>Notes<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Health care<\/td>\n<td>+31,000<\/td>\n<td>Largest sector gain<\/td>\n<\/tr>\n<tr>\n<td>Leisure &#038; hospitality<\/td>\n<td>+28,000<\/td>\n<td>Restaurants +11,000; accommodation +2,000<\/td>\n<\/tr>\n<tr>\n<td>Manufacturing<\/td>\n<td>-12,000<\/td>\n<td>-78,000 over past 12 months<\/td>\n<\/tr>\n<tr>\n<td>Federal government<\/td>\n<td>-15,000<\/td>\n<td>-97,000 YTD<\/td>\n<\/tr>\n<tr>\n<td>Temporary help services<\/td>\n<td>-10,000<\/td>\n<td>Typical early-cycle retrenchment<\/td>\n<\/tr>\n<\/tbody>\n<\/table><figcaption>Sector-level job changes, August 2025 (BLS).<\/figcaption><\/figure>\n<p>Measures of labor market slack and hours worked show a mixed picture. The average workweek held at 34.2 hours. The share of workers who are long-term unemployed has risen to 1.9 million, and continuing unemployment claims have been elevated since April.<\/p>\n<h2>Context &#038; Impact<\/h2>\n<p>After a prolonged post-pandemic expansion, the U.S. economy has been cooling under the influence of higher interest rates and recent policy shifts. The weak August payrolls and downward revisions increase the likelihood that the Federal Reserve will begin trimming its policy rate in September, as many market participants had anticipated.<\/p>\n<p>Financial markets initially reacted to the softer report with optimism about rate cuts, but sentiment shifted as investors weighed the risk that labor-market weakness could presage a deeper slowdown. Two-year Treasury yields fell sharply, reflecting renewed expectations of easier policy.<\/p>\n<p>Employers are not broadly engaging in large-scale layoffs, but hiring momentum has slowed and job finding has become harder for many. Economists warned that sustained weakness would raise the odds of higher long-term unemployment and slower wage growth.<\/p>\n<h2>Official Statements<\/h2>\n<blockquote>\n<p>\u201cJerome \u2018Too Late\u2019 Powell should have lowered rates long ago.\u201d<\/p>\n<p><cite>Former President (social media)<\/cite>\n<\/p><\/blockquote>\n<blockquote>\n<p>\u201cDisappointing\u201d was how a senior White House economic official described the report while noting other indicators of private investment remain favorable.<\/p>\n<p><cite>Kevin Hassett, White House National Economic Council (TV appearance)<\/cite>\n<\/p><\/blockquote>\n<aside>\n<details>\n<summary>Explainer: Two surveys and the U\u20116 rate<\/summary>\n<p>The monthly jobs report combines two surveys. The establishment survey (payrolls) measures jobs at firms and typically informs payroll counts; the household survey measures employment status among people and can differ in the short run. The U\u20116 rate is a broader unemployment measure that includes discouraged workers and people working part time for economic reasons; it rose to 8.1% in August.<\/p>\n<\/details>\n<\/aside>\n<h2>Unconfirmed<\/h2>\n<ul>\n<li>Whether the Fed will cut by a half-percentage point in September rather than a quarter-point \u2014 analysts remain divided.<\/li>\n<li>How deep federal payroll reductions will be after temporary pay-through arrangements expire at the end of September.<\/li>\n<\/ul>\n<h2>Bottom Line<\/h2>\n<p>August\u2019s report signals a clear slowdown in hiring and, together with revisions, marks the first monthly payroll decline since late 2020. Policymakers and markets will be watching subsequent monthly reports for signs that the slowdown is temporary or the start of a broader weakening.<\/p>\n<p>Near term, the data lower the bar for the Federal Reserve to begin cutting rates; over the medium term, much will depend on whether job openings, wages, and hiring rebound or continue to soften.<\/p>\n<h2>Sources<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.bls.gov\/news.release\/empsit.nr0.htm\" target=\"_blank\" rel=\"noopener\">Bureau of Labor Statistics \u2014 Employment Situation<\/a><\/li>\n<li><a href=\"https:\/\/www.nytimes.com\/2025\/09\/05\/business\/economy\/jobs-report-august.html\" target=\"_blank\" rel=\"noopener\">The New York Times \u2014 coverage of the August jobs report<\/a><\/li>\n<li><a href=\"https:\/\/www.federalreserve.gov\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve statements and meeting minutes<\/a><\/li>\n<li><a href=\"https:\/\/www.indeed.com\/\" target=\"_blank\" rel=\"noopener\">Indeed \u2014 labor market analysis<\/a><\/li>\n<li><a href=\"https:\/\/www.glassdoor.com\/research\/\" target=\"_blank\" rel=\"noopener\">Glassdoor Economic Research<\/a><\/li>\n<li><a href=\"https:\/\/www.capitaleconomics.com\/\" target=\"_blank\" rel=\"noopener\">Capital Economics \u2014 market commentary<\/a><\/li>\n<\/ul>\n<\/article>\n","protected":false},"excerpt":{"rendered":"<p>September 5, 2025 \u2014 The U.S. labor market slowed sharply in August: payrolls rose by only 22,000, the unemployment rate edged up to 4.3 percent, and June payrolls were revised down by 13,000, according to the monthly government report. Key Takeaways Employers added 22,000 jobs in August, far below consensus forecasts. The unemployment rate increased &#8230; <a title=\"U.S. Labor Market Stalled in August as Job Growth Nears Zero\" class=\"read-more\" href=\"https:\/\/readtrends.com\/en\/us-labor-august-slowdown\/\" aria-label=\"Read more about U.S. Labor Market Stalled in August as Job Growth Nears Zero\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":1517,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"U.S. Labor Market Stalls in August \u2014 Daily Brief","rank_math_description":"August payrolls rose by just 22,000 and unemployment ticked up to 4.3%, with June revised down by 13,000. Read verified facts, sector detail, and Fed implications.","rank_math_focus_keyword":"jobs report, unemployment, labor market, Fed, wage growth","footnotes":""},"categories":[2],"tags":[],"class_list":["post-1520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-stories"],"_links":{"self":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/posts\/1520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/comments?post=1520"}],"version-history":[{"count":0,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/posts\/1520\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/media\/1517"}],"wp:attachment":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/media?parent=1520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/categories?post=1520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/tags?post=1520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}