US Adds 22,000 Jobs August Unemployment Nears Four-Year High

The U.S. labor market showed significant signs of slowing in August 2025, with only 22,000 jobs added, far below expectations and down from 79,000 in July. The unemployment rate rose to 4.3%, the highest since 2021, while layoffs and hiring freezes increased, partly due to businesses leaning on automation and AI. This slowdown has intensified scrutiny of the Bureau of Labor Statistics after President Trump fired its head, casting doubts on the reliability of the employment data. Economic uncertainty fueled by Trump's policies, including trade wars, alongside prior Federal Reserve interest rate hikes, has contributed to cautious hiring decisions. The weak job growth and rising unemployment have led to expectations that the Federal Reserve will likely cut interest rates soon. Economists warn the labor market is fragile, signaling potential challenges ahead for workers and the broader economy.