The report indicates that the American economy has added fewer than 600,000 jobs so far in 2025|COD Newsroom|CC BY 2.0
The August employment report released Friday shows that the US added only 22,000 new jobs, down from 79,000 in July, signaling that growth has slowed. The number is well below the 75,000 analysts had anticipated.
During the month, unemployment also rose to 4.3% from 4.2%.
The report indicates that the American economy has added fewer than 600,000 jobs so far in 2025. It is the weakest January–August period since 2009 outside the pandemic.
Manufacturing and construction saw notable declines last month. Even businesses are holding back investment amid uncertainty over tariffs, immigration curbs, and reduced federal spending.
The job market is particularly tough on Black workers, whose jobless rates have jumped to 7.2%—the highest since 2021. Several blame it on the mass federal layoffs and DEI rollbacks.
New graduates and youngsters are seeing beginner-level jobs taken by AI, per a recent Stanford University study. The unemployment rate for those below 24 has risen to 10.5%.
Though August data are yet to be revised, June and July data indicate a stagnation in the job market, pointing towards a recession.
Weak numbers have led markets to bet heavily on interest rate cuts by the Federal Reserve at its September 16–17 meeting. Traders see a 75% chance the Fed lowers rates by a quarter point at each of its three remaining meetings this year, in September, October, and December.
However, inflation remains above 3%, well above the Fed’s 2% target.