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United States likely added 65,000 jobs last month, but jobseekers struggle and pay gains are meager
Confirmed
In Short: The U.S. job market showed signs of stability in August, with a net addition of 65,000 jobs, following a surprising drop of 23,000 in July, according to forecasts by FactSet.
The U.S. job market showed signs of stability in August, with a net addition of 65,000 jobs, following a surprising drop of 23,000 in July, according to forecasts by FactSet. While the unemployment rate remained unchanged, the labor market's resilience is being closely watched amid ongoing economic challenges and inflation concerns.
Wells Fargo's Jennifer Timmerman noted that the robust August jobs report supports consumer spending and suggests a potential Federal Reserve rate hike, though this is contingent on persistently high inflation. However, the job market faces headwinds from new US-Canada tariffs, trade tensions, and the Iran conflict, as highlighted by Oxford Economics' Tony Stillo.
Private sector hiring was particularly weak, with only 38,000 jobs added, while manufacturing and professional and business services sectors experienced job losses of 17,000 and 16,000 respectively. Education and health services led the hiring, according to ADP's latest report.
Meanwhile, the Canadian economy saw a significant job loss of 41,700, with the unemployment rate holding steady at 6.4 percent, as reported by Statistics Canada. This context underscores the complex economic landscape facing both nations.
What's confirmed
- U.S. Mint Sells $1 Gold-Colored Trump Coins Marking 250th Anniversary of Declaration Signing New Jersey Asks U.S. Supreme Court To Resolve Kalshi Sports Prediction Market Dispute U.S. employers added 162,000 jobs in August and kept the unemployment rate at 4.1 percent, according to the Labor Department data released Friday.
What's still developing
- The August jobs report likely showed that U.S. employers – companies, government agencies and nonprofits – collectively added a net 65,000 jobs last month after they unexpectedly slashed 23,000 in July, according to a survey of forecasters by the data firm FactSet.
- “We expect the economy will continue struggling to create jobs in the near term as mounting headwinds from new US-Canada tariffs, greater uncertainty from a flare-up in the trade war, and the ongoing Iran conflict and a shrinking population weigh on hiring,” Tony Stillo, director of Canada Economics at Oxford Economics, said in a note provided to Al Jazeera.
- The resilient labor market has seen traders reassess the probability of the Federal Reserve (Fed) raising interest rates to the 3.75%-4.00% range, which currently sits at 60% on Friday, up from 49% the previous day, according to the FedWatch tool.
- The report “will keep all of the focus from the Fed and the market on next week’s inflation print and will likely give the Fed more room to hike rates,” said Ryan Weldon, investment director and portfolio manager at IFM Investors.
- On Thursday, Fed governor Christopher Waller said he is leaning toward keeping the Fed’s rate unchanged, but would support a hike if inflation comes in high.
- “Wow. A huge August jobs report,” Heather Long, chief economist at Navy Federal Credit Union in Vienna, Virginia, wrote.
- The labor force participation rate rose 0.2 percentage points in August, while an alternative unemployment measure that counts discouraged workers and those holding part-time jobs for economic reasons fell to 7.7%, its lowest level since June 2025, according to the BLS.
- Healthcare, which has driven the bulk of this year’s payroll expansion, cooled noticeably in August, adding just 13,000 jobs against its 12-month running average of 32,000, BLS data showed.