US job growth stalled in August while unemployment crept up to its highest level since 2021, in a closely watched report Friday after weak data earlier prompted President Donald Trump to fire a key economic official.
Overall, the figures confirmed a labor market slowdown in the world’s biggest economy as businesses pull back on hiring while grappling with uncertainty sparked in large part by Trump’s fast-changing tariffs.
US job growth came in at 22,000 last month, down from July’s 79,000 figure, said the Department of Labor.
The jobless rate edged up from 4.2 percent to 4.3 percent, in line with analysts’ expectations but reaching its highest level since 2021.
Job growth in June, while earlier estimated at 14,000, was revised to a 13,000 decline, the report said. This was the first such decline since 2020.
Hiring in July was adjusted slightly upwards.
Analysts closely monitor US employment numbers given their bearing on the Federal Reserve’s interest rate decisions — and a deteriorating labor market is seen tipping the balance in favor of rate cuts.
Trump on Friday reiterated his call for Fed Chair Jerome Powell to slash rates, saying he should have done so “long ago.”
Friday’s numbers are also under scrutiny after a poor showing in July’s data — released last month — prompted Trump to claim the figures were “rigged” and fire the commissioner of labor statistics.
Nationwide chief economist Kathy Bostjancic said that data revisions take place as survey response rates have declined. If companies respond late, numbers have to be updated.
