Job growth continues to slow, signaling a cooling economy

"The U.S. economy added just 22,000 total non-farm payroll jobs in August, which economists say is further evidence of a cooling labor market. This data comes after the estimates for the prior two months were revised down by 21,000 jobs, and a net job loss of 13,000 in June. In addition, the unemployment rate ticked up slightly to 4.3% with 7.4 million people unemployed. This is the highest the unemployment rate has been since October 2021."

"August's largest job gain occurred in the health care sector, which added 31,000 jobs. However, this was offset by losses in the federal government (-15,000 jobs), in mining, quarrying, and oil and gas extraction (-6,000 jobs), and wholesale trade employment (-12,000 jobs). The job market is softening, with even sectors like health care, which had steadily contributed to job growth, now slowing, Mike Fratantoni, the Mortgage Bankers Association's senior vice president and chief economist, said in a statement."

"Other sectors showing notable declines included manufacturing, which lost 12,000 jobs in August and 78,000 jobs so far this calendar year. Economists said this may potentially be due to businesses responding to tariffs. The construction sector lost 7,000 jobs in August. Residential building construction employment was down 900 jobs, and residential specialty trade contractor employment lost 5,200 jobs, which is unfavorable news for homebuilders. The only construction sector to post a job gain in August was heavy and civil engineering construction, which gained 2,300 jobs."

U.S. job growth in August was just 22,000 nonfarm payrolls, reflecting a cooling labor market. Prior months were revised down by 21,000 jobs, including a net loss of 13,000 in June. The unemployment rate rose to 4.3%, with 7.4 million unemployed—the highest since October 2021. The three-month average payroll gain fell to 29,000. Health care added 31,000 jobs, offset by losses in the federal government (-15,000), mining and oil and gas (-6,000), and wholesale trade (-12,000). Manufacturing lost 12,000 jobs in August and 78,000 year-to-date, with tariffs cited as a possible factor. Construction lost 7,000 jobs overall.

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