US Employment Situation (Excerpts)

September 5 2025 - Total nonfarm payroll employment changed little in August (+22,000) and has shown little change since April. The unemployment rate rose to 4.3 percent, the U.S. Bureau of Labor Statistics reported today. A job gain in health care was partially offset by losses in federal government and in mining, quarrying, and oil and gas extraction.

Federal government employment continued to decline in August (-15,000) and is down by 97,000 since reaching a peak in January. (Employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.)

In August, health care added 31,000 jobs, below the average monthly gain of 42,000 over the prior 12 months. Employment continued to trend up over the month in ambulatory health care services (+13,000), nursing and residential care facilities (+9,000), and hospitals (+9,000).

Employment in social assistance continued to trend up in August (+16,000), reflecting continued job growth in individual and family services (+16,000).

In August, employment in mining, quarrying, and oil and gas extraction declined by 6,000, after changing little over the prior 12 months.

Wholesale trade employment continued to trend down in August (-12,000) and has fallen by 32,000 since May.

Manufacturing employment changed little in August (-12,000) but is down by 78,000 over the year. Employment in transportation equipment manufacturing declined by 15,000 over the month, in part due to strike activity.

Employment showed little change over the month in other major industries, including construction, retail trade, transportation and warehousing, information, financial activities, professional and business services, leisure and hospitality, and other services.

Average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3 percent, to $36.53 in August. Over the past 12 months, average hourly earnings have increased by 3.7 percent. In August, average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4 percent, to $31.46.

The change in total nonfarm payroll employment for June was revised down by 27,000, from +14,000 to -13,000, and the change for July was revised up by 6,000, from +73,000 to +79,000. With these revisions, employment in June and July combined is 21,000 lower than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)

Source: Bureau of Labor Statistics, US Department of Labor