The U.S. economy added just 22,000 jobs in August 2025, falling short of economists’ expectations of 75,000. This marks the first jobs report since President Donald Trump fired the Bureau of Labor Statistics commissioner Erika McEntarfer, who had released a similarly weak July report. The unemployment rate rose to 4.3%, the highest level since 2021 according to Bloomberg.
The August report revealed that the healthcare sector added 31,000 jobs, while other industries, including manufacturing, wholesale trade, and federal government, experienced job losses.
Revisions to previous months’ data showed a loss of 13,000 jobs in June and a modest gain of 79,000 in July, down from earlier estimates. These revisions bring the three-month average to just 29,000 jobs added per month.
Economists attribute the slowdown to factors such as ongoing trade tensions, immigration restrictions, and declining consumer confidence. The Federal Reserve is now expected to cut interest rates in its upcoming meeting, as the weak labor market raises concerns about economic growth. Federal Reserve Chairman Jerome Powell has indicated that labor market weakness could prompt such a move.
President Trump’s dismissal of McEntarfer followed her release of the July jobs report, which showed disappointing job growth. He accused her of manipulating the data to harm his administration’s image, without providing evidence.
McEntarfer, a Biden appointee, was replaced by acting commissioner William Wiatrowski. Trump has nominated conservative economist E.J. Antoni to permanently lead the BLS, though he has not yet been confirmed by the Senate.
The firing has raised concerns among economists and former officials about the independence and credibility of the BLS. Critics argue that politicizing the agency could undermine trust in its data, which is relied upon by policymakers, businesses, and researchers. Some have warned that such actions could erode confidence in the integrity of federal economic statistics.
As the labor market shows signs of weakening, policymakers face challenges in addressing the slowdown. The combination of sluggish job growth, rising unemployment, and trade uncertainties presents a complex economic landscape for the U.S. economy.
The August jobs report underscores the growing concerns about the U.S. labor market’s health and the potential implications for broader economic stability.
With key decisions on interest rates and economic policy on the horizon, the coming months will be critical in determining the trajectory of the nation’s economic recovery.
For further analysis and live updates on U.S. employment, see CNN.
