The U.S. labour market continued its downward trajectory in August, adding just 22,000 jobs, as per the report published by the Bureau of Labor Statistics (BLS). It is well below forecasts of around 75,000 to 80,000 jobs, and a sharp drop from the 79,000 jobs added in July.
The report also stated that the unemployment rate ticked up to 4.3%. This comes on the heels of President Donald Trump’s abrupt firing of former BLS Commissioner Erika McEntarfer last month, following the release of disappointing July figures.
The August report, the first under interim BLS leadership, underscores a broader decline in hiring that economists attribute to factors including high interest rates, effects of recent tariffs, and reduced federal spending. Some analysts predict that the US labor market is “dangerously close to stalling.”
BLS also made revisions to data of prior months, which show an even bleaker picture. June’s job numbers were adjusted downward by 27,000 to a net loss of 13,000, while July’s numbers were revised upward slightly from 73,000 to 79,000, resulting in a net downward revision of 21,000 jobs for the two months combined.
The three-month average job growth ending in August now stands at a mere 29,000, a sharp decline from the robust 196,000 monthly average seen earlier in the year.
The slowdown follows a turbulent July report, released on August 1, which initially showed nonfarm payrolls rising by just 73,000, well below forecasts. That report triggered an immediate backlash from the White House. President Trump accused BLS Commissioner Erika McEntarfer of “rigging” the figures to make his administration look bad. He announced her firing on social media hours after the release of the report.
However, now August job numbers are much worse compared to July, showing that Trump’s firing of McEntarfer was illogical and arbitrary.
the August data aligns with other indicators of labour market weakness, including a drop in job openings to 7.2 million in July.
