Washington: The US economy added just 22,000 jobs in August, far below the expected 75,000, with the unemployment rate rising to 4.3 per cent from 4.2 per cent, marking the highest level in nearly four years.
The Bureau of Labour Statistics (BLS) reported the data, with healthcare and social assistance leading gains, while tech, retail, mining, and wholesale trade saw declines.
The slowdown affects the US broadly, with urban tech hubs and manufacturing regions hit hardest. Healthcare remains a bright spot, adding roughly 31,000 jobs.
The New York Times also reported that employers cut 13,000 jobs in June, the first net loss of jobs since December 2020.
The wages rose by 3.7 per cent, the lowest since July 2024. Job openings have also dropped 45 per cent since 2022, reflecting cautious employer sentiment amid trade tensions.
The latest data comes as another official report confirmed on Wednesday that there were more unemployed people than vacancies in July for the first time since the Covid-19 pandemic, with job openings slowing to a 10-month low.
BLS payroll data, collected through mid-August, faced scrutiny after President Trump fired BLS Commissioner Erika McEntarfer in August, alleging data manipulation. Revisions are standard, but heightened political controversy.
Trump nominated E J Antoni, Chief Economist at the conservative Heritage Foundation, for the post — a choice many economists have criticised as lacking adequate qualifications.
Experts argue that Trump’s global tariffs, along with high interest rates and economic uncertainty, are curbing hiring.
However, the weak jobs data have raised expectations of interest rate cuts, with government bond yields falling sharply. The two-year Treasury yield fell to its lowest level since 2022.
The Federal Reserve now faces pressure to cut rates at its September 17 meeting, with futures markets signalling a 70 per cent chance of a reduction to bolster jobs.
(IANS)
