US Economy Adds Just 22,000 Jobs in August as Unemployment Rises to 4.3%

Lead: U.S. employers added a mere 22,000 jobs in August, far below economists’ expectations, while the unemployment rate climbed to 4.3%, marking a four-year high and fueling bets on an imminent Fed rate cut.

Nut Graf: The disappointing August jobs report highlights a significant cooling in the labor market. With hiring growth stalling and job losses recorded in June, policymakers and investors are now closely watching for Federal Reserve action to shore up economic momentum.

Key Highlights

  • Job Gains and Losses
    • Healthcare payrolls rose by 31,000 positions.
    • Social assistance employment increased by 16,000.
    • Federal government payrolls declined by 15,000.
  • Revisions and Trends
    • June marked the first monthly job loss in four and a half years.
    • July’s gain was revised up, but overall summer employment growth remains weak.
  • Unemployment and Participation
    • The jobless rate rose from 4.2% to 4.3%.
    • Labor-force participation edged higher as more Americans reentered job hunting.

Labor Market Details

Friday’s Bureau of Labor Statistics release showed nonfarm payrolls up just 22,000 in August, against forecasts of roughly 75,000, underlining a sharp slowdown in hiring. June’s data was revised to show a decline, the first drop since December 2020, intensifying concerns over labor-market resilience.

Sector Breakdown

  • Health Care: +31,000 jobs
  • Social Assistance: +16,000 jobs
  • Federal Government: -15,000 jobs

Despite gains in health care and social services, widespread caution among employers persists amid ongoing uncertainty over trade policy, tariffs, and federal spending cuts.

Implications for Monetary Policy

The cooling trend reinforces market expectations that the Federal Reserve will deliver an interest-rate cut at its September meeting. Fed officials have flagged growing risks to growth as hiring stalls and wage pressures stabilize, leaving policymakers poised to shift toward easing to support the economy.

Sources are embedded inline.