September 2025 Jobs Report Recap
Posted by Darren Findley on Mon, Sep 08, 2025 @ 04:00 PM

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Cooling Jobs Market in August Fuels a Stable Growth Path

The August labor market report reflects a cooling U.S. economy, with job creation slowing to 22,000, levels reminiscent of the early pandemic recovery. While this marks a deceleration from July, it also signals a potential turning point where the labor market may be stabilizing after months of volatility. Amid signs of economic stagnation, the modest job gains suggest resilience in key sectors and offer policymakers a clearer view of where targeted support may be most effective moving forward.

Policy uncertainty surrounding tariffs, aggressive federal spending cuts, and immigration enforcement has created a challenging environment for employers. Many businesses are adopting a "wait-and-see" approach to hiring, while others are implementing hiring freezes or considering layoffs. The Federal Reserve faces increased pressure to cut interest rates aggressively as labor market conditions deteriorate.

The Numbers*:

The U.S. economy added 22,000 jobs in August, well below expectations of 75,000 and marking the weakest growth since the pandemic recovery.

The unemployment rate slightly increased to 4.3%, reaching its highest level in nearly four years.

There were 7.2 million** open jobs.

The labor force participation rate increased to 62.3%.

The number of job quits in the U.S. remained the same at 3.1 million**.

  • Average hourly earnings rose by 0.3% month-over-month to $36.44.
  • Average weekly hours worked remained unchanged at 34.3 hours​.
  • Total hires were 5.2 million**, while total separations were 5.1 million**.
  • Within separations, layoffs/discharges accounted for 1.6 million**.

Industry Trends:

Industry August Jobs Notes
Healthcare + 31,000 Continued growth despite broader weakness 
Social Assistance + 16,000 Individual and family services 
Federal Government  - 15,000 Policy-driven workforce reductions continue  
Manufacturing - 12,000 Strike activity and broader industrial weakness 
Wholesale Trade  - 12,000  Reflecting reduced business investment 
Mining & Extraction  - 6,000 Energy sector contraction


The revisions for the previous month further painted a grim picture, with June employment revised down by 27,000 jobs to -13,000 and July revised up by only 6,000 to 79,000, resulting in a net reduction of 21,000 jobs from earlier estimates.

Get latest Jobs Report:

* Above represents August Data

** The figures above for openings, hires and separations reflect the July Job Openings and Labor Turnover Survey (JOLTS) 2025 report.

Sources:

Past Reports

Topics: Labor Market Trends

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