U.S. Adds Just 80,000 Jobs in August, Labor Market Cools Further

UPDATE: The U.S. labor market shows continued signs of cooling, with employers adding just 80,000 jobs in August 2025, as confirmed by a survey from FactSet. This modest gain highlights a persistent slowdown in hiring compared to previous years, raising concerns among economists and policymakers alike.

The U.S. Labor Department will release its official jobs report shortly, revealing an unemployment rate that is expected to remain steady at 4.2 percent. While this indicates stability, it also suggests that employers are adopting a cautious approach—hesitant to hire new staff while reluctant to let go of existing employees.

Economists, including Heather Long, chief economist at Navy Federal Credit Union, express concern over the labor market’s fragility. “The labor market is showing signs of cracking. It’s not a red siren alarm yet, but the signs keep growing that businesses are starting to cut workers,” she stated.

This comes in the wake of significant economic shifts, including 11 interest rate hikes by the Federal Reserve aimed at combating inflation. Additionally, the impact of Donald Trump’s trade policies has contributed to uncertainty in hiring practices across various sectors. In fact, the economy has generated an average of only 85,000 new jobs monthly this year, sharply down from 168,000 in 2024 and a staggering 400,000 during the post-COVID hiring boom from 2021 to 2023.

In a troubling sign, the number of Americans applying for unemployment benefits—a key indicator of layoffs—recently surged to its highest level since June. Moreover, outplacement firm Challenger, Gray & Christmas reported that U.S.-based employers have announced over 892,000 job cuts this year alone, surpassing the entire total of 761,000 for all of 2024.

Adding to the controversy, the recent employment figures have been scrutinized amid allegations of political influence within the Labor Department. Following a disappointing jobs report last month, President Trump dismissed Erika McEntarfer, the economist responsible for the Bureau of Labor Statistics, and nominated E.J. Antoni, a loyalist, as her successor. Until Antoni’s confirmation, William Wiatrowski, the acting BLS commissioner, will oversee the report.

Concerns about data reliability persist, with a notable drop in company participation in labor surveys. A decade ago, approximately 60 percent of companies responded to surveys; now, that figure is down to 40 percent. This decline raises questions about the accuracy of employment data amidst ongoing economic challenges.

As the Labor Department prepares to release the official report, all eyes will be on the numbers to gauge the current state of the U.S. job market. The findings are expected to provide critical insights into the economic landscape, influencing policy decisions and business strategies moving forward.

Stay tuned for the official report from the Labor Department, which is set to be published shortly. The implications of these numbers could be significant for both policymakers and job seekers across the nation.