Job growth in August was weaker than anticipated, and even the typically reliable healthcare sector saw a slowdown.
According to the Labor Bureau, U.S. employers added only 22,000 positions last month, while the unemployment rate climbed to 4.3%.
Healthcare has generally been a strong contributor to job growth recently, but the latest figures indicate a possible decline in that momentum. The Labor Department noted that the sector generated 31,000 jobs last month, significantly lower than the monthly average of 42,000 over the past year. Additionally, social assistance, which covers services like childcare, contributed 16,200 jobs.
Which industry added jobs?
Key sectors that increased employment in August 2025 (Preliminary data):
- Healthcare and Social Support: +46,800
- Leisure and Hospitality: +28,000
- Other Services: +12,000
- Retail: +10,500
- Transport and Warehouse: +3,600
In August, healthcare and social assistance sectors led job creation, adding 46,800 positions, marking the lowest monthly growth since January 2022. According to Bloomberg, this slowdown is noteworthy as these industries accounted for nearly 90% of all private sector job growth in 2025.
Furthermore, a separate government report released earlier this week indicated that jobs in healthcare and social assistance decreased by 181,000 in July, representing the largest decline among all sectors.
While aging populations typically boost demand for these roles in the long term, the recent data suggests that even the most stable aspects of the labor market are showing signs of slowing.
Which industries reduced employment?
Major sectors that cut jobs in August 2025 (Preliminary data):
- Professional and Business Services: -17,000
- Government: -16,000
- Manufacturing: -12,000
- Wholesale: -11,700
- Construction: -7,000
Apart from healthcare, many major sectors experienced job losses in August. Professional and business services saw a drop of 17,000 positions, while construction lost 7,000 jobs.
Manufacturing also faced a downturn, shrinking by 12,000 jobs, down from a peak in April. The federal government reported a reduction of another 15,000 jobs last month, contributing to a total decrease of 97,000 since the beginning of the year.
The Labor Bureau’s revisions revealed further declines, with 21,000 job losses adjusted down for June and July. June recorded the first monthly loss since December 2020, showing a drop of 13,000 jobs.
In total, the U.S. economy has generated around 75,000 jobs per month in 2025 so far, which is less than half the average of 186,000 jobs created in 2024. Currently, the three-month average stands at only 29,000 jobs per month.
“On a percentage basis, this employment growth hasn’t been as slow in over 60 years outside of a recession,” noted Jason Farman, an economist from Harvard University, in a post on social media.
Will the Federal Reserve lower interest rates?
Weak employment trends may prompt the Federal Reserve to reduce benchmark interest rates. Chairman Jerome Powell has hesitated to do so until the impacts of inflation from Trump’s tariff policies become clearer.
Following the disappointing employment report, Trump pressured Powell to lower rates, even criticizing him on social media.
Last month, Trump dismissed Erica Mantelfer, head of the Bureau of Labor Statistics, claiming, without evidence, that the employment numbers were manipulated against him.
Trump has nominated Eji Antoni, an economist with the Conservative Heritage Foundation, to replace her, but he still requires Senate confirmation. For now, Bill Wiertrowsky, a BLS representative, is overseeing the job report situation.
The Associated Press contributed to this report.
