Employers added 22,000 jobs in August, below forecasts

In August, the U.S. added only 22,000 jobs (all part-time), falling short of the expected 80,000 and indicating challenges in the labor market due to economic uncertainty and tariffs from the Trump administration. The unemployment rate rose to 4.3%.

Employers have become more cautious, with the average monthly hiring from June to August dropping significantly compared to 2024. Revised data shows that employers shed 13,000 jobs in June rather than adding the 14,000 that had been reported a month earlier, marking the first decline since late 2020. A recent survey suggests businesses are hesitant to hire due to weaker demand.

Native-born workers dropped by 561K, the largest one-month decline since August 2024. Foreign-born workers rose by 50K, the first increase since March.

Analysts believe this data complicates the Federal Reserve's decision on potential rate cuts, as inflation rises and hiring slows. Heather Long, chief economist, warned that immediate action is needed to prevent a recession.