The U.S. job market slowed sharply in August, signaling deeper cracks in the economy under President Donald Trump’s trade and immigration policies. Employers added only 22,000 jobs, far below forecasts of 80,000, the Labor Department reported Friday. The unemployment rate rose to 4.3%, the highest since 2021.
Factories shed 12,000 jobs last month, construction firms cut 7,000, and the federal government eliminated 15,000 positions, according to AP. Healthcare and social assistance accounted for nearly all private-sector job gains.
U.S. employers added just 22,000 jobs last month as the labor market continued to cool under uncertainty over President Donald Trump’s economic policies. https://t.co/2lMJXIFDVV
— 10/11 News (@1011_News) September 5, 2025
Economists cited Trump’s sweeping tariffs, stepped-up immigration enforcement, and federal workforce reductions as major headwinds.
Consumer sentiment has also weakened. A University of Michigan survey shows 62% of Americans expect unemployment to rise in the coming year.
August jobs report sorely misses forecasts — bolstering interest rate cut hopes https://t.co/bugtu1IXa7 pic.twitter.com/YbzzxcRfQ5
— New York Post (@nypost) September 5, 2025
The weak jobs report increases pressure on the Federal Reserve to cut interest rates at its September meeting. Chair Jerome Powell has resisted Trump’s repeated demands for swift cuts, but economists now expect significant easing.
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TIPP Staff
