U.S. Employers Added a Modest 80,000 Jobs Last Month

When the Labor Department released a weak jobs report last month, an enraged President Donald Trump responded by firing the economist overseeing the data and nominating a loyalist to replace her, Paul Wiseman reported for the Associated Press (AP).

The unemployment rate is forecast to remain at 4.2%, reflecting a “no-hire, no-fire” posture: employers are hesitant to expand payrolls but unwilling to lose existing workers.

Last week’s release of the August jobs report is not expected to spark such drama. Companies, government agencies, and nonprofits likely added 80,000 jobs last month, according to a FactSet survey of forecasters.

That’s a slight improvement from July’s 73,000 but still far below last year’s hiring pace.

The unemployment rate is forecast to remain at 4.2%, reflecting a “no-hire, no-fire” posture: employers are hesitant to expand payrolls but unwilling to lose existing workers.

Still, some signs suggest layoffs may be starting.

The slowdown reflects both the lingering drag of 11 Federal Reserve interest rate hikes in 2022–23 and uncertainty created by Trump’s trade policies.

“The labor market is showing signs of cracking,” said Heather Long, chief economist at Navy Federal Credit Union. “It’s not a red siren alarm yet, but the signs keep growing that businesses are starting to cut workers."