US Job Growth Slows Amid Trump Policy Uncertainty

US employers added just 22,000 jobs last month as the labor market continued to cool under uncertainty over President Donald Trump's economic policies. The Labor Department said hiring decelerated from 79,000 in July. The unemployment rate ticked up to 4.3%, also worse than expected and the highest level since 2021.

"The real numbers that I'm talking about are going to be whatever it is, but will be in a year from now," the president said.

Factories shed 12,000 jobs last month, the fourth straight month that manufacturers have cut payrolls. Construction companies cut 7,000 jobs, and the federal government 15,000.

Workers' average hourly earnings rose 0.3% from July and 3.7% from August 2024, exactly what forecasters expected. The year-over-year figure is nearing the 3.5% that many economists see as consistent with the Federal Reserve's 2% inflation target.

"The labor market is showing signs of cracking," said Heather Long, chief economist at Navy Federal Credit Union, said before Friday's report. "It's not a red siren alarm yet, but the signs keep growing that businesses are starting to cut workers."

The Labor Department reported Thursday that the number of Americans applying for unemployment benefits – a proxy for layoffs – rose last week to the highest level since June, though the number of claims remained within a healthy range.

The outplacement firm Challenger, Gray & Christmas said Wednesday that U.S.-based employers have announced more than 892,000 jobs cuts this year through August, more than the 761,000 reported for all 12 months of 2024.

In a sign that US hiring gains are limited and fragile, nearly 80% of new private sector jobs this year have been created in just one industry: healthcare and social assistance, a Labor Department category that spans hospitals to daycare centers.

"I remember being at an international conference where the chief statistician of the Russian Republic was complaining about how the Russians don't want to complete their surveys," William Beach, BLS commissioner from 2019 to 2023, said in an interview last month. "What could he do? If you can't compel completion in Russia, you can't compel it anywhere."