U.S. job market weakens further in August

The U.S. job market weakened further in August, raising new concerns about the health of the world’s largest economy.

Employers added just 22,000 jobs last month, fewer than expected, while the unemployment rate rose from 4.2% to 4.3%.

The figures have a scattered series of data in the job market this week and have heightened concerns last month, when the Labor Department said hiring in May and June was far weaker than initially estimated.

The department said Friday its latest estimates showed that the U.S. was actually unemployed in June, the first decline since 2020.

Investors have bets that the central bank’s lower interest rates at the U.S. meeting this month will respond, a move that he said is almost certain now.

“The warning bells rang in the labor market a month ago are getting louder,” said Olu Sonola, head of economic research at Fitch.

U.S. President Donald Trump responded to the August signs that by firing the head of the Bureau of Labor Statistics, accusing her of having no evidence, making the numbers make him look bad.

But analysts say the trouble in the job market is partly due to the president’s overall changes in tariffs and immigration policies, which economists have been warning that will damage the economy by raising corporate costs and uncertainty.

His administration also reduced government spending and fired thousands of government workers.

The Labor Department said the federal government ruled 15,000 positions last month. Manufacturing and construction companies also reported that the drop in payroll offsets the benefits in the healthcare sector.

“There are four consecutive months of unemployment in manufacturing stand out,” Mr. Sonora said. “It’s hard to say that tariff uncertainty is not the key driver of this weakness.”

The number of jobs created each month has been steadily slowing since the pandemic reopened.

But analysts say the economy only needs to create about 50,000 jobs a month to keep up with population growth — far below previous population growth — Trump’s crackdown on immigration has driven new workers into the United States in recent years.

Stock markets open slightly higher after the report, which also showed that average hourly wages have increased by 3.7% over the past year.

In the global bond market, interest rates for investors demanding to borrow fell sharply as the Federal Reserve grew lower confidence, reversing the surge earlier this week.

“The initial reaction showed that the market was focused on the Fed’s tax cuts rather than concerns about cooling the economy,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.

“Bad news looks good news, at least this morning.”

White House economic adviser Kevin Hasset admitted in a speech to broadcaster CNBC that the number of jobs in August was “disappointing”, but said he hopes future revisions will have better situations.

Earlier this week, the government reported that job openings have been falling to a minimum since 2024, and job seekers have surpassed positions for the first time since the pandemic.

Unemployment payment claims have also risen this week, and Friday’s report puts the unemployment rate at its highest level since October 2021, although it is not far from the historical lows.