The Bureau of Labor Statistics (BLS) has again handed President Donald Trump a bleak set of jobs numbers, just one month after he fired the agency’s commissioner over weak employment data.
On Friday morning, the BLS reported that nonfarm payroll employment rose by only 22,000 in August. Analysts had forecast that the economy would add 75,000 jobs during the month. According to the agency, gains made in health care were offset by losses in federal government employment, as well as mining, quarrying and oil and gas extraction.
While July’s figures were revised up to 79,000 from 73,000, June’s numbers were revised down by 27,000, dropping from 14,000 to minus-13,000. Meanwhile, the unemployment rate edged up to 4.3 percent from 4.2 percent.
Evan Vucci/AP Photo
Why It Matters
Friday’s jobs report was the focus of heightened attention because of last month’s disappointing data as well as the leadership change it led to.
The figures are likely to exacerbate existing concerns over the health of the U.S. labor market, a key point of reference for the Federal Reserve as it weighs up the appropriate monetary policy to ensure maximum employment without exacerbating America’s inflationary struggles.
What To Know
Minutes before the jobs figures were due to be published, the BLS noted that it was experiencing “technical difficulties” but that it was working to resolve the issue. The report was released on time.
According to the report, job growth in August was led by health care (+31,000), though the gains were below its 12-month average of 42,000. This was offset by a decline of 15,000 jobs in federal government employment, which has fallen by 97,000 since peaking in January.
Mining, quarrying and oil and gas extraction lost 6,000 jobs during the month, with losses also observed in wholesale trade and manufacturing, both dropping by 12,000.
Revisions to previous months’ data—which meant June and July’s figures were together 21,000 lower than previously reported—are typical in employment reports. The BLS said that these are the result of “additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.”
In early August, the BLS reported that the U.S. economy had added only 73,000 jobs in July, well below the 110,000 that analysts had penciled in. Additionally, the agency revised down figures from May and June by a total of 258,000. In response to this and allegations over data tampering during the tail end of former President Joe Biden‘s term, Trump announced via Truth Social that he had fired BLS Commissioner Erika McEntarfer.
The decision was criticized by lawmakers, economists and former commissioners, who warned that it set a dangerous precedent for political influence over the agency and could compromise the credibility of future reports.
Days later, Trump said he would be nominating E.J. Antoni as McEntarfer’s replacement. Antoni is the chief economist at the Heritage Foundation and has been a long-standing critic of the BLS and its methodology—dubbing the agency’s statistics “phony baloney” in July and calling on the Department of Government Efficiency (DOGE) to “take a chain saw to the BLS” in a November post on X. Shortly after his nomination, Antoni floated the possibility of doing away with the monthly jobs report in an interview with Fox News.
Since McEntarfer’s dismissal, Deputy Commissioner William Wiatrowski has served as acting commissioner of the BLS, and Antoni’s appointment remains subject to Senate confirmation.
What People Are Saying
Ger Doyle, regional president for North America at staffing and workforce solutions company ManpowerGroup, in comments shared with Newsweek: “Today’s report adds weight to signs of a slow but persistent cooling trend. Hiring momentum continues to soften and pressures are continuing to build, especially for job seekers outside high-demand sectors.
“Fewer job openings, softer wage growth, and longer job searches are signs of a slowdown. The hiring momentum that kicked off the year has been tempered by uncertainty. What was once a ‘wait and see’ posture is now a strategic balancing act, grow where it matters, hold where you can, and invest where the future demands it.”
Nancy Vanden Houten, lead U.S. economist at Oxford Economics, told Newsweek: “On balance the August jobs report was considerably weaker than expected, clearing the way for the Federal Reserve to cut interest rates at its September 17 meeting.
“The weakening picture of the labor market painted by the August jobs data along with other recent labor market statistics all but ensure a rate cut at the [Federal Open Market Committee] meeting later this month.”
Former BLS Commissioner Erica Groshen told Newsweek following last month’s report: “I was shocked and saddened by the unprecedented, abrupt dismissal of the Commissioner in response to news that was unwelcome to the President. I am concerned about its effect on the BLS, the statistical system and the country as a whole—whose access to trustworthy information may suffer.
“Commissioners do not see the data before it is final. They have no access to the underlying data or to the curating and estimation process.”
Moody’s Chief Economist Mark Zandi, on X prior to Friday’s report: “This coming Friday’s release of the jobs report for August by the Bureau of Labor Statistics will be critical in gauging the threat of recession. I expect payroll jobs to increase by 50k in the month and the unemployment rate to notch higher to 4.3 percent.
“With the revisions, it is conceivable that the recently paltry job gains turn into losses. If so, there will be a legitimate debate over whether the economy is already in a recession.”
President Donald Trump, speaking to reporters on Thursday, said that the “real” jobs figures would be revealed in a year’s time.
“The real numbers that I’m talking about are going to be whatever it is—but will be in a year from now on.”
What Happens Next
Before his appointment is finalized, Antoni is expected to undergo a hearing with the Senate Committee on Health, Education, Labor, and Pensions, The Washington Post reported, though dates for his hearings or a final confirmation vote have not yet been announced.
The jobs report makes the Federal Reserve cutting rates at its mid-September meeting highly likely. Experts had previously expected the central bank to decide on a 25 basis-point cut. However, traders are now factoring in a 14 percent chance of a larger 50-point cut, according to the CME FedWatch tool.
Update 9/5/25, 8:59 a.m. ET: This article was updated with additional context.
Update 9/5/25, 10:20 a.m. ET: This article was updated with additional information and comment.
2025-09-05 14:15:00