Posted on 09/05/2025 5:53:05 AM PDT by Miami Rebel
Job creation sputtered in August, adding to recent signs of labor market weakening and likely keeping the Federal Reserve on track for a widely anticipated interest rate cut later this month.
Nonfarm payrolls increased by just 22,000 for the month, while the unemployment rate rose to 4.3%, according to a Bureau of Labor Statistics report Friday. Economists surveyed by Dow Jones had been looking for payrolls to rise by 75,000.
The report showed a marked slowdown from the July increase of 79,000, which was revised up by 6,000. Revisions also showed a net loss of 13,000 in June after the prior estimate was lowered by 27,000.
The report was the first since President Donald Trump fired former BLS Commissioner Erika McEntarfer following the release of the July jobs report a month ago. The move came after the report showed not just a weak level of job creation but also dramatic reductions in previous months’ totals.
In McEntarfer’s place, the president nominated economist E.J. Antoni, a Trump loyalist from the Heritage Foundation who previously had criticized the BLS numbers as being politically distorted. William Wiatrowski is serving as acting BLS commissioner.
While the pace of hiring was slow, average hourly earnings increased 0.3% for the month, meeting the estimate, though the annual gain of 3.7% was slightly below the forecast for 3.8%. Hiring was held back by a payroll reduction in the federal government, which reported a decline of 15,000.
Health care again led by sectors, adding 31,000 jobs, while social assistance contributed 16,000. Wholesale trade and manufacturing both saw declines of 12,000 on the month.
4.3% isn’t high. Economically, 4% is called full employment.
Correct. And losses in one sector like federal employment (cutting bloated staff is good) offset gains in others.
Perhaps the BLS should’ve skipped release data altogether, since the end of summer is a non-recurring event that happened only this year.
“I just want to say here, private payrolls coming in. The expectation was 75,000, we got 38,000. And there was a loss of 16,000 jobs in government” Cheryl Casone followed before tossing to Charles Payne. “But again, you know, that 22,000 number, Charles, it’s a weaker-than-expected number, and these revisions are pretty brutal.”
Fox Business
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