Labor Market Stalls as Unemployment Climbs to 4.3%

Lead U.S. employers added a mere 22,000 jobs in August, and the unemployment rate rose to 4.3%, marking the weakest labor‐market performance in nearly four years and underscoring a looming economic slowdown.

Nut Graf The Bureau of Labor Statistics’ August report reveals both stagnating job creation and downward revisions to prior months-including a first net loss of 13,000 jobs in June-heightening calls for a Federal Reserve rate cut to cushion the economy.

Hiring Slows to Crawl

Nonfarm payrolls rose by just 22,000, far below the 75,000 economists had forecast.
June revisions showed a 13,000‐job decline, the first monthly loss since December 2020, following downward adjustments to May and July figures.

Rising Unemployment and Participation

The unemployment rate ticked up from 4.2% to 4.3%, its highest level since late 2021.
Labor force participation edged higher as more individuals reentered job‐seeking, intensifying upward pressure on the jobless rate.

Sector Performance

Health care and social assistance were the only sectors to add significant positions:

Health care: +31,000 jobs
Social assistance: +16,000 jobs Other industries, including manufacturing, retail and federal government, saw little to no growth or outright declines.

Policy Implications

Federal Reserve: Officials have signaled a potential rate cut when policymakers meet on September 16-17, citing increasing labor‐market risks even as inflation remains above target.
Tariff and immigration policies: Economists point to elevated trade barriers and tighter immigration enforcement as key factors constraining both labor supply and hiring demand.

Subheadings and bullet points help readers quickly grasp the report’s key takeaways and the broader economic context.