The US job market has shown signs of significant weakening, with recent data pointing to a sharp slowdown in job creation and a rise in unemployment. According to the US Bureau of Labor Statistics (BLS), the economy added just 22,000 jobs in August, a figure far below expectations, while the unemployment rate increased to 4.3%.
This slowdown is notable because it ends a prolonged streak of continuous job growth. A data revision revealed that the US economy lost 13,000 jobs in June, marking the first job losses since December 2020. The streak of 53 consecutive months of job growth, which lasted from January 2021 through May 2025, has now come to an end, as reported by Daniel Zhao, chief economist at Glassdoor, cited by CNBC.
The US job market has hit a cliff-edge, say analysts
Data from Indeed’s Laura Ullrich, director of economic research for North America, highlighted that the US economy has added fewer jobs in the first eight months of the year than at any point since 2010, during the Great Recession. This signals a significant cooling of economic activity.
Unemployment rises as job openings fall
The latest BLS figures also show that the number of unemployed individuals surpassed the number of job openings for the first time since April 2021. This indicates a challenging environment for jobseekers, as more people compete for fewer available roles.
Despite the rising unemployment rate, economists note that 4.3% remains within a “perfectly healthy level” relative to historical standards, as Bradley Saunders mentioned to CNBC. However, the hiring slowdown reflects uncertainty among employers, who appear to be in a holding pattern amid policy changes, such as tariffs, and economic caution.
Sector-by-sector job creation uneven
The data reveals a mixed picture across different industries. Healthcare and social assistance added 46,800 jobs in August, while leisure and hospitality gained 28,000 positions. Retail trade saw an increase of 10,500 jobs, and transportation and warehousing grew by 3,600 roles.
On the other hand, several sectors experienced job losses. Utilities shed 800 jobs, financial activities lost 3,000, and information services cut 5,000. More significant declines were seen in mining and logging (-6,000), construction (-7,000), wholesale trade (-11,700), manufacturing (-12,000), government (-16,000), and professional and business services (-17,000), according to the BLS data, as reported by CNBC.
Advice for jobseekers in a difficult market
Career coach Mandi Woodruff-Santos described the current labour market as “really challenging,” likening it to “the worst game of musical chairs,” where many more candidates compete for very few vacancies, CNBC reported.
Experts suggest that building professional networks is crucial in this environment. Woodruff-Santos advises jobseekers to attend industry events, reconnect with former colleagues, and engage with online platforms like LinkedIn to maintain visibility. Laura Ullrich also emphasised the value of reaching out to former professors and teachers, which can open doors, as reported by CNBC.
Keeping skills current is another key recommendation. Woodruff-Santos encouraged workers to stay updated with new software and industry trends to improve their employability. She also noted the importance of “pivoting in place” by seeking internal opportunities within current roles, such as taking on new responsibilities or shadowing colleagues.
What the outlook means for the economy
While some sectors continue to hire at a reasonable pace, risks remain, particularly in healthcare, where federal Medicaid and social assistance funding reductions may slow future hiring, Ullrich told CNBC.
Despite the difficult conditions, jobseekers are advised to remain patient and proactive. Woodruff-Santos highlighted the importance of perseverance, saying, “You’ll start to feel like there’s no hope, but you can’t let that cloud weigh you down,” as quoted by CNBC.
The recent data signals a shift in the US labour market that could have wide-ranging effects on the economy and individuals’ livelihoods. Understanding these changes and adapting strategies will be vital for navigating this evolving employment landscape.
Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
This slowdown is notable because it ends a prolonged streak of continuous job growth. A data revision revealed that the US economy lost 13,000 jobs in June, marking the first job losses since December 2020. The streak of 53 consecutive months of job growth, which lasted from January 2021 through May 2025, has now come to an end, as reported by Daniel Zhao, chief economist at Glassdoor, cited by CNBC.
The US job market has hit a cliff-edge, say analysts
Data from Indeed’s Laura Ullrich, director of economic research for North America, highlighted that the US economy has added fewer jobs in the first eight months of the year than at any point since 2010, during the Great Recession. This signals a significant cooling of economic activity.
Unemployment rises as job openings fall
The latest BLS figures also show that the number of unemployed individuals surpassed the number of job openings for the first time since April 2021. This indicates a challenging environment for jobseekers, as more people compete for fewer available roles.
Despite the rising unemployment rate, economists note that 4.3% remains within a “perfectly healthy level” relative to historical standards, as Bradley Saunders mentioned to CNBC. However, the hiring slowdown reflects uncertainty among employers, who appear to be in a holding pattern amid policy changes, such as tariffs, and economic caution.
Sector-by-sector job creation uneven
The data reveals a mixed picture across different industries. Healthcare and social assistance added 46,800 jobs in August, while leisure and hospitality gained 28,000 positions. Retail trade saw an increase of 10,500 jobs, and transportation and warehousing grew by 3,600 roles.
On the other hand, several sectors experienced job losses. Utilities shed 800 jobs, financial activities lost 3,000, and information services cut 5,000. More significant declines were seen in mining and logging (-6,000), construction (-7,000), wholesale trade (-11,700), manufacturing (-12,000), government (-16,000), and professional and business services (-17,000), according to the BLS data, as reported by CNBC.
Advice for jobseekers in a difficult market
Career coach Mandi Woodruff-Santos described the current labour market as “really challenging,” likening it to “the worst game of musical chairs,” where many more candidates compete for very few vacancies, CNBC reported.
Experts suggest that building professional networks is crucial in this environment. Woodruff-Santos advises jobseekers to attend industry events, reconnect with former colleagues, and engage with online platforms like LinkedIn to maintain visibility. Laura Ullrich also emphasised the value of reaching out to former professors and teachers, which can open doors, as reported by CNBC.
Keeping skills current is another key recommendation. Woodruff-Santos encouraged workers to stay updated with new software and industry trends to improve their employability. She also noted the importance of “pivoting in place” by seeking internal opportunities within current roles, such as taking on new responsibilities or shadowing colleagues.
What the outlook means for the economy
While some sectors continue to hire at a reasonable pace, risks remain, particularly in healthcare, where federal Medicaid and social assistance funding reductions may slow future hiring, Ullrich told CNBC.
Despite the difficult conditions, jobseekers are advised to remain patient and proactive. Woodruff-Santos highlighted the importance of perseverance, saying, “You’ll start to feel like there’s no hope, but you can’t let that cloud weigh you down,” as quoted by CNBC.
The recent data signals a shift in the US labour market that could have wide-ranging effects on the economy and individuals’ livelihoods. Understanding these changes and adapting strategies will be vital for navigating this evolving employment landscape.
Ready to navigate global policies? Secure your overseas future. Get expert guidance now!