U.S. August nonfarm payrolls +22,000

The U.S. labor market slowed sharply in August, with the latest government data showing one of the weakest jobs gains in years.

The Bureau of Labor Statistics reported on Friday that just 22,000 new jobs were added last month, far below forecasts for 75,000. The unemployment rate rose to 4.3%, matching expectations but underscoring the broader cooling trend in hiring.

Revisions to earlier months painted an even weaker picture. July’s figure was adjusted up slightly to 79,000 jobs from 73,000, but June’s total was revised downward again, now showing a net loss of 13,000 jobs — the first monthly decline since 2020. Taken together, the U.S. has averaged fewer than 30,000 new jobs per month over the past three months. President Trump previously fired the head of the BLS after earlier revisions erased more than a quarter million jobs from prior estimates.

Wages continued to rise modestly, with average hourly earnings up 0.3% on the month and 3.7% from a year earlier, in line with Wall Street expectations. Sector breakdowns showed the strongest hiring in education and health services, which added 46,000 positions. The steepest declines came in durable goods manufacturing and professional business services, which lost 19,000 and 17,000 jobs, respectively. Government payrolls also fell by 16,000.

Other data this week confirmed the weakness. ADP reported just 54,000 private-sector jobs added in August, while jobless claims hit their highest level since June. Taken together, the reports point to a labor market losing momentum at the same time as Trump continues to pressure the Federal Reserve to deliver interest rate cuts.

Markets reacted swiftly to Friday’s report, with bond yields falling as traders priced in near-certainty of a rate cut at the Fed’s September meeting. Futures data showed a 98% probability of a 0.25% reduction, with a small chance of a larger 0.50% cut.