August Jobs Report Signals Weakening U.S. Labor Market
The U.S. labor market showed significant signs of strain in August 2025, as the economy added only 22,000 jobs—far below economists’ forecasts—while the unemployment rate increased to 4.3%, according to the Bureau of Labor Statistics (BLS).
A downward revision to June’s employment figures revealed a loss of 13,000 jobs, marking the first month of net job losses since December 2020. This revision ended a 53-month streak of consecutive monthly job gains that began in January 2021, noted Daniel Zhao, chief economist at Glassdoor.
Labor Market Stagnation Amid Economic Uncertainty
Laura Ullrich, director of economic research for North America at Indeed, highlighted that outside the pandemic period, such low job creation during the first eight months of a year has not been seen since 2010, during the Great Recession.
Bradley Saunders, North America economist at Capital Economics, described the labor market as having “headed off a cliff-edge,” reflecting a sudden deceleration in hiring activity.
Additional BLS data released earlier in the week showed that in July, the number of unemployed individuals surpassed available job openings for the first time since April 2021, signaling a shift in labor market dynamics.
While layoffs remain historically low, hiring has slowed to pre-pandemic levels not seen since about 2013. Economists attribute this cautious stance among employers to ongoing economic uncertainties and policy factors such as tariffs.
Sectoral Outlook and Risks
Despite the broad slowdown, sectors like healthcare and hospitality continue to record steady hiring, according to Ullrich. However, she cautioned that upcoming reductions in federal Medicaid and social assistance funding could dampen healthcare employment growth in the near term.
Strategies for Job Seekers in a Challenging Market
Career coach Mandi Woodruff-Santos characterized the current job search environment as akin to “the worst game of musical chairs,” with far more candidates than available positions.
She advises job seekers to keep their skills current, particularly by learning new industry-relevant software and technologies. Building and maintaining a professional presence on platforms like LinkedIn can help job seekers gain visibility and engage their networks.
Woodruff-Santos recommends creating a personal platform to showcase expertise and passion, emphasizing the importance of proactive communication.
Laura Ullrich also suggests that job seekers consider part-time work, broaden their sectoral job search to leverage transferable skills, and pursue volunteer opportunities that demonstrate adaptability and experience to potential employers.
Additionally, Woodruff-Santos encourages professionals to explore internal opportunities within their current organizations, such as taking on new responsibilities, seeking promotions, or acquiring new skills through job shadowing.
Patience remains essential in the current climate. “You’ll start to feel like there’s no hope, but you can’t let that cloud weigh you down,” Woodruff-Santos said. She emphasized the value of support from colleagues, peers, and coaching communities to sustain motivation during difficult job searches.
