A key report on U.S. employment released Friday pointed to a weakening labor market.
The economy added only 22,000 jobs in August, falling short of expectations, while the unemployment rate rose slightly to 4.3%, according to the Bureau of Labor Statistics. Earlier this year, monthly job growth had exceeded 100,000.
With ongoing trade disputes leading to tariffs on most foreign goods, prices have begun to climb. Economic uncertainty appears to be affecting businesses, and the combination of slower hiring and rising inflation has raised concerns about the state of the economy.
Here are the key takeaways from the latest report:
### First Job Losses Since 2020
The latest report included revisions to June and July’s initial estimates. Hiring in June was originally reported at 139,000 jobs added but was adjusted to show a loss of 13,000—the first decline since December 2020, during the pandemic’s peak unemployment. July’s figures were revised upward by 6,000, from 73,000 to 79,000.
Revisions are a standard part of the Bureau of Labor Statistics’ process. However, the adjustments sparked tension with the White House last month after major corrections. Initial job numbers for May and June had been overestimated by 258,000 due to updated data from employers and government agencies. With the latest revisions for May, June, and July, total adjustments now show 279,000 fewer jobs than initially reported across those months.
After last month’s revisions, the former commissioner of the bureau, Erika McEntarfer, was dismissed, with critics claiming the data was manipulated to harm certain political interests. Economists, however, emphasize that the bureau consists of career professionals with years of experience.
### Declines in Federal and Manufacturing Jobs
Federal employment fell by another 15,000 in August, bringing total cuts to 97,000 since January. Manufacturing also saw losses, dropping by 12,000 jobs in August and 78,000 over the past year.
Growth was seen in healthcare and social services, which added 31,000 and 16,000 jobs, respectively.
### Rising Unemployment Among Black Americans
The jobless rate for Black Americans increased by 0.3% to 7.5%—more than double the rate for White and Asian Americans, which remained just above 3.5%. Hispanic Americans also saw an increase, reaching 5.3%.
While the overall unemployment rate edged up only 0.1%, the sharper rise for Black workers underscores ongoing inequalities in employment.
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