Fresh jobs data released on Friday indicates a significant slowdown in hiring, marking the first report since a disappointing jobs summary last month led President Donald Trump to dismiss the official responsible for compiling labor statistics. The latest report fell noticeably short of economists' expectations, revealing that the U.S. added only 22,000 jobs in August, according to the U.S. Bureau of Labor Statistics (BLS). This figure demonstrates a sharp decline from the 79,000 jobs added in the previous month.
The unemployment rate experienced a slight increase, rising to 4.3%, although it remains at a historically low level. Previous reports had indicated a marked slowdown in hiring over the summer months, raising concerns among economists about a potential recession. Data from the BLS showed that the U.S. had averaged approximately 28,000 jobs added over the three months ending in July, a significant cooldown from the roughly 196,000 jobs added on average during the prior three-month period.
The jobs report also included a downward revision for June, revealing that the U.S. labor market had lost 13,000 jobs that month, a stark contrast to the previous estimate of a 14,000 jobs gain. This marked the first monthly job loss since December 2020. The implications of this latest jobs data are far-reaching, particularly regarding the anticipated interest rate cut when top Federal Reserve policymakers convene in two weeks. Fed Chair Jerome Powell has indicated a cautious approach, suggesting that the central bank may prioritize concerns over declining employment growth rather than rising prices.
The lower-than-expected jobs reading could solidify expectations for an interest rate cut, which would represent the first adjustment since last year. As of late Thursday, investors estimated a 97% chance of a quarter-point rate cut this month, according to the CME FedWatch Tool, a key measure of market sentiment. By Friday morning, those odds had surged to 99%.
In the wake of the previous month's weak jobs report, President Trump dismissed BLS Commissioner Erika McEntarfer. The report prompted Trump to suggest, without evidence, that job statistics had been manipulated. It is important to note that the BLS routinely revises estimates of jobs added in prior months. McEntarfer, who was appointed by President Biden and confirmed by the Senate in 2024, expressed her gratitude for the opportunity to serve in a social media post after her dismissal. "It has been the honor of my life to serve as Commissioner of BLS alongside many dedicated civil servants tasked with measuring a vast and dynamic economy," she stated.
Former BLS Commissioner William Beach, who was appointed by Trump, condemned McEntarfer's firing, labeling it a "totally groundless" action that sets a dangerous precedent and undermines the statistical integrity of the Bureau. Beach voiced his concerns on social media, stating, "The totally groundless firing of Dr. Erika McEntarfer sets a dangerous precedent." McEntarfer did not respond to an earlier request for comment from ABC News.
In a move to replace McEntarfer, Trump nominated E.J. Antoni, the chief economist at the conservative-leaning Heritage Foundation. Antoni is known for his criticism of the BLS and is a contributor to the conservative policy blueprint, Project 2025. Trump expressed confidence in Antoni's ability to ensure that labor statistics are "HONEST and ACCURATE," stating, "Our economy is booming, and E.J. will ensure that the numbers released reflect that reality."