US Job Market Stalls in August, Unemployment Hits Four-Year High
US Job Market Stalls in August, Unemployment Hits Four-Year High
The latest jobs report, released Friday, paints a sobering picture of the American labor market, showing a significant slowdown in August. The US economy added a mere 22,000 jobs, while the national unemployment rate climbed to 4.3%, marking its highest level in nearly four years.
Economists are sounding alarms, with Glassdoor economist Daniel Zhao telling CNN the job market is “stalling” and “slowing to a dangerous speed.” The trend over the past three months has seen an average net gain of only 29,000 jobs per month, a pace not seen since the recovery from the Great Recession in 2010. Notably, June’s revised figures now show a net loss of 13,000 jobs.
The breadth of job losses is also concerning; more industries shed jobs than added them in August, and the goods-producing sectors, including manufacturing, have experienced four consecutive months of declines, largely attributed to the impact of tariff policies and associated uncertainty.
While the healthcare industry remains a lone engine of growth, adding an estimated 46,800 jobs, it represents only a fraction of the overall workforce. LinkedIn’s Kory Kantenga highlighted that “for 85% of workers, they’re not seeing a lot of the jobs added.”
A particularly stark indicator is the unemployment rate for Black workers, which surged to 7.5% in August—its highest since October 2021. This disproportionate rise, compared to a slight decrease for White workers, is often seen as a “canary in the coal mine” for broader economic weakness, warned economist Dean Baker.
Experts point to persistent economic headwinds, high interest rates, and policy uncertainty as key factors contributing to the hiring freeze. While a recession is not deemed imminent by some, the continued weakening of the labor market could lead to a “sharper economic slowdown” if consumer spending is curtailed. However, there is anticipation that potential interest rate cuts and tax incentives later this year could reaccelerate growth.
Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.