August labor report: Job market cools; adds 22,000 new jobs

Addison Group

The US labor report added 22,000 new jobs in August, again falling short of economists’ expectations. The unemployment rate climbed to 4.3% compared to 4.2% in July’s report, according to the Bureau of Labor Statistics.

Nonfarm payroll employment, over month change, seasonally adjusted, August 2023 - August 2025

Healthcare led the way, adding 31,000 new jobs last month. While leisure and hospitality added 28,000 new jobs.

Government saw an overall decline of 16,000 jobs last month, with the federal government accounting for nearly 94% of the cuts. Professional and business services also saw a decline of 17,000 jobs.

While the August report shows a softening job market, investors are optimistic that the central bank will cut interest rates by at least a quarter-point at its September 16-17 meeting.

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