US Hiring Slows Sharply, Unemployment Rises To 4.3%

The U.S. job market showed significant signs of weakening in August, with employers adding only 22,000 jobs—far below economists' expectations—and the unemployment rate rising to 4.3%, the highest since 2021. This deterioration is attributed to uncertainty stemming from President Donald Trump's economic policies, including sweeping and fluctuating tariffs on imports and an immigration crackdown that has reduced the labor pool. The sluggish hiring has raised concerns about future consumer spending, which drives 70% of U.S. economic activity, increasing the risk of a harder economic landing. The Federal Reserve had already implemented 11 interest rate hikes in 2022 and 2023 to combat inflation, but uncertainty around trade policies and recent court rulings declaring many tariffs illegal have left businesses unsettled. Analysts suggest the Federal Reserve may prioritize labor market stability over inflation targets in the near term, potentially leading to interest rate cuts. Personal stories, such as that of Alexa Mamoulides, who has applied to over 100 jobs without success, reflect the broader challenges faced by job seekers in this softening labor market.