America’s labor market lost altitude in August, adding just 22,000 jobs while the unemployment rate rose to 4.3%, a near four‑year high. Revisions also showed an earlier month slipping into negative territory for the first time since 2020 — a sign the slowdown is broadening.
Why it matters
A weak print and rising joblessness strengthen the case for a Federal Reserve rate cut at the September 16–17 meeting. Traders now debate the size of the move as policymakers juggle softer hiring against inflation dynamics.
By the numbers
- +22,000 nonfarm payrolls in August, well below consensus.
- 4.3% unemployment, up from 4.2% in July.
- Revisions showed June employment turned negative, the first monthly loss since 2020.
Where the jobs are
Gains clustered in health care and social assistance, while manufacturing and parts of business services lagged. Federal employment has been sliding across 2025.
The backdrop
Companies cite tariffs, cost pressures and uncertainty as reasons for slower hiring. Markets reacted with lower Treasury yields and a modest risk‑off tone in equities.
What to watch
- The Fed’s September decision and any guidance on the path beyond.
- Household vs. establishment survey divergence — and potential benchmark revisions.
- Sectoral strain in manufacturing and freight as higher input costs meet weaker demand.
Source reporting: Reuters coverage of the August jobs report and market reaction.