New data from the U.S. Bureau of Labor Statistics (BLS) paints a picture of a cooling labor market, with minimal job growth and an unemployment rate that’s holding steady. While some sectors are still expanding, others are seeing declines, hinting at a period of stabilization after a long stretch of rapid growth.
The Numbers at a Glance
The total nonfarm payroll employment saw a modest increase of just 22,000 jobs in August. This follows a trend of little change since April, suggesting the economy’s hiring spree has hit the brakes. The unemployment rate held steady at 4.3%, with 7.4 million people still looking for work.
On a positive note, the healthcare sector continued to be a bright spot, adding 31,000 jobs. This growth was seen across hospitals, nursing facilities, and ambulatory health care services. The social assistance sector also showed strength, with a gain of 16,000 jobs.
However, these gains were partially offset by significant job losses in other areas. The federal government saw a decline of 15,000 jobs, while the mining, quarrying, and oil and gas extraction industry shed 6,000 positions.
Digging Deeper into the Data
The BLS data is compiled from two key surveys: the household survey, which looks at the labor force status of individuals, and the establishment survey, which tracks nonfarm employment and earnings by industry.
- The Unemployed: The number of people unemployed for 27 weeks or more—known as the long-term unemployed—remained at 1.9 million. This group now accounts for over a quarter of all unemployed people. The number of people looking for their first job (new entrants) decreased, largely offsetting a prior month’s increase.
- Who’s Not Working? The number of people not in the labor force but who still want a job increased over the year to 6.4 million. These are individuals who aren’t actively looking for work, and therefore aren’t counted in the unemployment numbers. A subset of this group are discouraged workers, who believe no jobs are available for them. That number held steady at 514,000.
- Wages and Hours: For those who are employed, average hourly earnings rose by 10 cents to $36.53 in August. Over the past year, wages have increased by 3.7%. The average workweek for private-sector employees remained consistent at 34.2 hours.
Revisions and What’s Next
The BLS also revised its previous employment figures, adjusting the job change for June down by 27,000 and for July up by 6,000. These revisions highlight the dynamic nature of economic data and how initial reports can change as more information becomes available.
The next update on the employment situation is scheduled for Friday, October 3, 2025. Stay tuned to see if the labor market continues to stabilize or if it picks up steam once more.
What do you think these numbers mean for the economy? Let us know in the comments below! 👇