WASHINGTON, Sept 9 — The U.S. labor market showed signs of slowing in August, with job growth weakening sharply and the unemployment rate rising to its highest level in nearly four years, according to the latest report from the Bureau of Labor Statistics (BLS).
Nonfarm payrolls rose by only 22,000 last month, a dramatic slowdown from the average monthly gains of 147,000 earlier this year. June’s employment figures were revised down to show a loss of 13,000 positions—the first decline since December 2020. Over the past four months, job creation has averaged just 27,000 per month, reflecting a notable cooling in hiring activity.
The unemployment rate ticked up to 4.3% in August from 4.2% in July. Analysts say the increase is linked to more Americans entering the workforce while fewer job seekers were able to find employment, highlighting growing labor market pressures.
Revisions Show Substantial Shortfall in Job Growth
BLS revisions indicate that between April 2024 and March 2025, the U.S. economy added 911,000 fewer jobs than initially reported, based on updated state tax records. The downward adjustment points to slower expansion across sectors such as leisure and hospitality, retail, and professional and business services.
Industry-Specific Trends
Healthcare employment grew by 31,000 jobs in August, while social assistance added 16,000 positions. These gains were offset by a decline of 15,000 federal government jobs and a 6,000 drop in mining, quarrying, and oil and gas extraction. Manufacturing overall was mostly unchanged, although transportation equipment manufacturing lost 15,000 positions, partly due to strike-related disruptions.
Economists suggest the slowdown in hiring and rising unemployment could influence Federal Reserve policy decisions, including potential adjustments to interest rates, as officials monitor economic growth and inflation pressures.
The August report underscores a shift in the U.S. job market, signaling that after a prolonged period of steady growth, employment gains are losing momentum, prompting businesses and policymakers to reassess expectations moving forward.
