The U.S. labor market showed significant signs of weakening in August. The Bureau of Labor Statistics (BLS) revised employment levels down by 911,000 between April 2024 and March 2025, about 76,000 fewer jobs per month than previously reported. Over the past three months, job growth has averaged just 29,000 per month, signaling that the labor market has reached a standstill. Nonfarm payrolls rose by only 22,000 in August, well below the economists’ expectations of 75,000. 

Additionally, according to the LinkedIn Workforce Report, hiring across the U.S. declined by 4.9% in July 2025 compared to July 2024.

The small job gains in August were concentrated in health care (+31,000) and social assistance (+16,000), while federal government (-15,000), wholesale trade (-12,000), and manufacturing (-12,000) saw notable losses. Average hourly earnings rose 3.7% year-over-year to $36.53.

Jobless claims climbed to 263,000, while a broader level that includes discouraged workers and the underemployed climbed to 8.1%, both the highest since October 2021. 

The New York Federal Reserve’s August Survey of Consumer Expectations reported job-seeker confidence at a record low, with respondents citing just a 44.9% probability of finding a new job if displaced, the lowest since the survey began in 2013 and down 5.8 points from July. 

These indicators point to a labor market that continues to slow and an economy facing growing uncertainty. For employers, this environment requires thoughtful planning and agile workforce strategies to adapt to shifting conditions, ensuring that critical business objectives are met. At Stage 4 Solutions, we remain committed to partnering with our clients to navigate this uncertainty and provide timely access to the expertise they need, at the budgets they must work within.