Job growth badly missed expectations in August, and unemployment ticked up

"The US added 22,000 jobs in August, badly missing the expected 75,000, and unemployment increased to the highest rate since 2021. Unemployment rose from 4.2% to 4.3%, as expected. Revisions showed the first monthly job loss in years. June's growth was revised from 14,000 to a loss of 13,000, and July's topline figure was revised slightly up from 73,000 to 79,000. "With these revisions, employment in June and July combined is 21,000 lower than previously reported," BLS said."

""Overall, while the labor market appears to be in balance, it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers," Federal Reserve Chair Jerome Powell said on August 22. "This unusual situation suggests that downside risks to employment are rising. And if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.""

"Economists and markets expect the Fed to make its first interest rate cut of the year this month. Before the release, parts of the BLS' website were reportedly offline. That glitch comes as more scrutiny is on the Bureau's data after President Donald Trump fired former Commissioner Erika McEntarfer. Tariff uncertainty continues to affect business decisions. Last week, the US Court of Appeals for the Federal Circuit ruled that most of Trump's tariffs are illegal but will remain in effect through October 14."

The US economy added 22,000 jobs in August, far below expectations of 75,000, while the unemployment rate rose to 4.3%, the highest since 2021. Revisions showed a first monthly job loss in years: June was revised from 14,000 to a loss of 13,000 and July was revised from 73,000 to 79,000, leaving June–July employment 21,000 lower than previously reported. Parts of the BLS website were reportedly offline before the release, drawing scrutiny after President Trump fired the bureau’s former commissioner. Job seekers report increased networking, certifications, and AI use amid cooling demand. Tariff uncertainty and court rulings add business uncertainty. Economists expect a Fed rate cut this month.

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