Summary: August’s report shows the U.S. economy downshifting. Employers added roughly 22,000 jobs while unemployment rose to 4.3%, a near four‑year high. Revisions to prior months suggest the slowdown is broader than first reported.
Why it matters
Lower labor tightness eases wage pressure and strengthens the case for a policy rate cut this month. For households, slower income growth could temper discretionary spending into Q4; for businesses, financing costs may ease but sales growth could soften.
Key facts
- Payrolls: ~22,000 (Aug)
- Unemployment: 4.3%
- Street view: some banks now pencil in a 50 bps move
What to watch
The size of the Fed’s cut; CPI/PPI prints for confirmation of disinflation; any rise in long‑term unemployment or decline in labor‑force participation.
Sources
- https://www.reuters.com/business/us-job-growth-weakened-sharply-august-unemployment-rate-rises-43-2025-09-05/
- https://www.reuters.com/business/instant-view-us-job-growth-slows-sharply-august-unemployment-rate-ticks-higher-2025-09-05/
- https://www.reuters.com/business/stanchart-expects-fed-cut-rates-by-50-bps-next-week-after-weak-jobs-data-2025-09-08/