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09/05/2025

Weak Summer Labor Market Flashes Warning Signs for the Economy

Employers shed jobs in June for the first time since the pandemic

The U.S. labor market created few jobs in August and shrank earlier in the summer, a first since the pandemic, as the economy’s engine sputters under the weight of President Donald Trump's policies.

Employers added 22,000 jobs in August, far fewer than expected, the Bureau of Labor Statistics (BLS) reported Friday morning. The unemployment rate ticked up to 4.3 percent, the highest since late 2021.

The drop-off capped four months of significantly slower jobs growth, a turning point after years of steady post-pandemic gains. Until now, economists have largely credited the job market’s resilience for keeping the country out of a recession. But with hiring slowing and industries across the economy — including manufacturing, construction, professional and business services and the government — cutting jobs in August, there are growing concerns that the labor market’s decline could set off broader economic trouble.

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