US job growth slowed sharply in August and revisions pushed June into net losses, as mounting uncertainty over President Donald Trump’s tariff, immigration and spending policies brought hiring to a near standstill.
The US added just 22,000 nonfarm jobs in August, the Bureau of Labor Statistics (BLS) reported Friday, lower than economists’ expectations for about 75,000 jobs.
Gains for the prior two months were revised lower by a combined 21,000 jobs. July was revised up by 6,000 jobs for a gain of 79,000 jobs, while June was revised down by 27,000 jobs to show a net loss of 13,000 jobs, the first since the Covid-19 pandemic prompted massive job losses in 2020.
US manufacturing lost 12,000 jobs in August, making for combined losses of 78,000 jobs in 2025. Wholesale trade lost 12,000 jobs and has fallen by 32,000 since May.
The US unemployment rate edged up to 4.3pc in August from 4.2pc in July, BLS said.
Friday’s employment report is the last before Federal Reserve policymakers meet 16-17 September to decide whether to hold the target lending rate at 4.25-4.5pc for a seventh time this year, or to cut it. CME’s FedWatch tool on Friday after the jobs report gave 98pc probability the Federal Open Market Committee (FOMC) will cut rates by a quarter point at its next meeting, up from 97.6pc odds on Thursday and 86.4pc a week earlier.
“This report green lights a September FOMC easing and implies further action will be required to stabilize the labor market before year end,” Pantheon Macroeconomics said in a note.
The August employment report is the first since Trump sacked the former commissioner of labor statistics on 1 August following the July report earlier that day that showed the largest downward revisions to the prior two months in decades. Trump alleged at the time, without producing any evidence, that the data had been “manipulated”.
Federal government jobs declined by 15,000 in August and have dropped by 97,000 since January, reflecting Trump’s slashing of the federal workforce. Employees receiving severance pay or on paid leave are reported as employed.
Employment in mining, quarrying and oil and gas extraction declined by 6,000. Health care added 31,000 jobs while social assistance added 16,000.
Employment was little changed in construction, retail trade, transportation and warehousing, financial activities, professional and business services and leisure and hospitality.
Average hourly earnings rose by 3.7pc in the 12 months through August, down from 3.9pc in July.
2025-09-05 14:29:00