The United States labor market showed little movement in August 2025, with overall employment growth slowing and the unemployment rate unchanged at 4.3%, according to the latest report from the U.S. Bureau of Labor Statistics (BLS).
Nonfarm payroll employment increased by just 22,000 jobs, extending a trend of minimal changes since April. While the healthcare and social assistance sectors continued to add jobs, losses in the federal government, mining, and manufacturing weighed on overall growth.
Healthcare Leads Job Gains, Government and Mining Weigh Down
The healthcare industry remained the strongest contributor to employment growth in August, adding 31,000 jobs, though still below its average monthly gain of 42,000 over the past year. Ambulatory health care services, nursing and residential care facilities, and hospitals each recorded steady increases.
Social assistance also expanded, with 16,000 new jobs created, reflecting continued demand for individual and family services.
However, the gains were offset by declines elsewhere. Federal government employment shrank by 15,000 positions, continuing a downward trend that has seen the sector lose nearly 100,000 jobs since January. Mining, quarrying, and oil and gas extraction fell by 6,000 jobs, while wholesale trade and manufacturing each posted declines of 12,000. Manufacturing losses were partly attributed to strike activity in the transportation equipment industry.
Labor Force and Unemployment Trends
The number of unemployed Americans stood at 7.4 million in August, showing little change from the previous month. Long-term unemployment, defined as those jobless for 27 weeks or more, remained at 1.9 million, making up more than a quarter of the total unemployed.
Labor force participation was 62.3%, while the employment-to-population ratio remained steady at 59.6%. Both figures have declined by 0.4 percentage points compared to a year earlier.
Part-time work for economic reasons also remained high, with 4.7 million people working fewer hours than desired due to lack of full-time opportunities.
Wages and Workweek Steady
Average hourly earnings for all private-sector employees rose by 0.3% in August to USD36.53, marking a 3.7% increase over the past year. Among production and nonsupervisory workers, average hourly pay increased by 0.4% to USD31.46.
The average workweek for all employees remained unchanged at 34.2 hours, while manufacturing employees saw their average hours edge down slightly to 40.0 per week.
The August data highlights a U.S. job market that is stable but losing momentum. Strong demand in healthcare and social assistance continues to provide support, yet broader employment growth is being restrained by public sector cuts, weaker mining activity, and disruptions in manufacturing.
Economists note that while the unemployment rate remains low by historical standards, sluggish job creation combined with uneven sectoral performance may influence the Federal Reserve’s decisions on interest rates in the coming months.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
