Hiring slowdown continues in 1st jobs report since Trump fired commissioner
Fresh jobs data on Friday showed a continued hiring slowdown in the first such release since a dismal jobs report last month prompted President Donald Trump to fire the top official tasked with compiling labor statistics. The reading fell well short of economists' expectations.
The U.S. added 22,000 jobs in August, according to data from the U.S. Bureau of Labor Statistics. That figure showed a sharp decrease from 79,000 jobs added in the previous month. The unemployment rate ticked up to 4.3%, but it remained at a historically low level.
A previous jobs report showed a sharp slowdown of hiring over the summer, eliciting concern among some economists about a possible recession.
The U.S. added an average of about 28,000 jobs over three months ending in July, which marked a major cooldown from the roughly 196,000 jobs added on average over the previous three-month period, U.S. Bureau of Labor Statistics (BLS) data showed.
The jobs report on Friday included a downward revision for the month of June, saying the U.S. labor market had lost 13,000 jobs that month, much lower than a previous estimate of 14,000 jobs added. It marked the first monthly job loss since December 2020.
The latest jobs data holds implications for a widely expected interest rate cut when top Federal Reserve policymakers gather in two weeks.
Fed Chair Jerome Powell recently said the central bank would "proceed carefully" but he hinted at the possibility of an interest rate cut, appearing to indicate greater concern for flagging employment growth than rising prices.
The lower-than-expected reading on Friday could cement a potential interest rate cut, which would amount to the first interest-rate adjustment since last year.
Late Thursday, investors pegged the chances of a quarter-point rate cut this month at 97%, according to CME FedWatch Tool, a measure of market sentiment. As of Friday morning, the odds of a a quarter-point cut had risen to 99%.
Hours after the release of the weak jobs report last month, Trump removed BLS Commissioner Erika McEntarfer. The jobs report featured downward revisions, prompting Trump to suggest without evidence that the job statistics had been "manipulated." The BLS routinely revises estimates of jobs added in previous months.
McEntarfer, a Biden appointee who was confirmed by the Senate in 2024, had served in the federal government for two decades.
"It has been the honor of my life to serve as Commissioner of BLS alongside the many dedicated civil servants tasked with measuring a vast and dynamic economy," McEntarfer said in a social media post after her dismissal. "It is vital and important work and I thank them for their service to this nation."
William Beach, a former commissioner of the Bureau of Labor Statistics, who was appointed by Trump, condemned McEntarfer's dismissal.
"The totally groundless firing of Dr. Erika McEntarfer, my successor as Commissioner of Labor Statistics at BLS, sets a dangerous precedent and undermines the statistical mission of the Bureau," Beach posted on X.
McEntarfer did not respond to an earlier ABC News request for comment.
As a replacement for McEntarfer, Trump nominated E.J. Antoni, chief economist at the conservative-leaning Heritage Foundation. Antoni is a longtime critic of the BLS and a contributor to the conservative policy blueprint Project 2025.
"Our Economy is booming, and E.J. will ensure that the Numbers released are HONEST and ACCURATE," Trump said of Antoni in a social media post.
