The U.S. economy added just 22,000 jobs in August, signaling a continued slowdown in the labor market as businesses adjust to higher costs and uncertainty tied to tariffs and federal spending cuts.
The unemployment rate rose to 4.3%, the highest since 2021 when we were coming off an unemployment spike caused by the Covid-19 pandemic. June’s employment numbers were also revised downward, showing a net loss of 13,000 jobs, the first monthly decline since December 2020.
Healthcare added 31,000 positions in August, but most other sectors were stagnant or in decline. Manufacturing lost 12,000 jobs—extending an annual drop of 78,000. Federal employment fell by 15,000, bringing the total loss for the year up to a staggering 97,000 jobs.
The latest figures deepen concerns about the direction of the economy under President Donald Trump’s tariff-focused economics. Job growth so far this year stands at 598,000—that’s roughly half the total added over the same period in 2024. Economists warn the downturn is broad, with weakness across industries and a growing number of long-term unemployed workers.
The report comes weeks after Trump fired Bureau of Labor Statistics commissioner Erika McEntarfer, baselessly accusing her agency of manipulating figures following a series of downward revisions. Trump has since nominated E.J. Antoni, a Heritage Foundation economist and contributor to Project 2025, to lead the bureau. Critics warn the move politicizes an agency that is historically neutral.
Other indicators confirm a cooling job market. Payroll processor ADP said private employers added 54,000 jobs in August, well below expectations. Challenger, Gray & Christmas reported 85,979 announced layoffs in the same month—up 39% from July.
The Federal Reserve meets September 17 to decide whether to cut interest rates. Trump has stated that he wants rates slashed, but the Federal Reserve remains outside of the control of the Executive Branch. Fed Chair Jerome Powell—whom Trump has clashed with in recent months, even calling for his firing—has acknowledged mounting risks in the job market, but remains cautious about the effect of tariffs and immigration policy on inflation.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.