August jobs report: hiring stalls with unemployment up to 4.3%

Core Insights - The U.S. labor market is showing signs of cooling, with only 22,000 jobs added in August, significantly lower than the 79,000 in July and below the expected 80,000 [2] - The unemployment rate increased to 4.3%, the highest since 2021, indicating a decline in job market momentum [2] - Manufacturing and construction sectors experienced job losses, with factories shedding 12,000 jobs and construction cutting 7,000 jobs [2] - The Federal Reserve is likely to cut interest rates in response to the weak job numbers, as the labor market's performance is influenced by interest rate hikes and trade policy uncertainties [2] Labor Market Performance - The Labor Department's report revealed a downward revision of 21,000 jobs for June and July, with actual job losses of 13,000 in June, marking the first monthly decline since December 2020 [2] - The number of Americans applying for unemployment benefits rose to the highest level since June, although claims remain within a healthy range [2] - U.S.-based employers announced over 892,000 job cuts through August, surpassing the total of 761,000 for all of 2024 [2] Economic Policy Impact - President Trump's economic policies, including trade wars, have contributed to uncertainty in the labor market, affecting hiring decisions [2] - The Federal Reserve's reluctance to cut rates has been influenced by the impact of Trump's import taxes on inflation [2] - The Labor Department is facing challenges in data collection due to a decline in company response rates to surveys, which has dropped from 60% to 40% over the past decade [4]