US job market slows
The US job market is neutral. In September, the economy added just 22,000 jobs, as the unemployment rate rose to 4.3%—its highest mark in nearly four years. The sluggish growth points to a labour market losing momentum following several years of steady growth.
The August report also downgraded June’s figures, indicating the economy shed 13,000 jobs during the month. It is the first negative employment month since December 2020, breaking the second-longest streak of job growth on record. FwdBonds chief economist Christopher Rupkey bluntly stated, “The Great American jobs machine has stalled.”
Hiring slows amid uncertainty
Economists had anticipated jobs growth of around 76,500, so the disappointing results came as a surprise. Indeed’s director of economic research Laura Ullrich, explained that the slowdown reflects “immense economic uncertainty and significant policy changes in 2025.”
There are various reasons for such uncertainty. Companies are waiting due to changes in tariffs, immigration, and federal spending budgets. High interest levels also make it riskier to bring new workers on board, and as a result, many companies are hesitant to expand their workforce. Lightcast breaks it down this way: “A lot of companies are just saying, ‘not now.'” They’re waiting for more certainty.”
Limited job gains leave many on the sidelines
The slow job growth of the labour market deprived numerous workers of more alternatives. The labour force increased by 436,000 workers in August, moving the participation rate fractionally to 62.3%. But most of the increase stemmed from job seekers re-entering the labour market, which moved the more comprehensive unemployment rate.
Jennifer Timmerman of Wells Fargo noted a small silver lining: “The median time seeking employment fell to a three-month low,” indicating that at least some workers are being hired more quickly, even though growth overall is weak.
Healthcare drives most job creation
The US employment market is being sustained by healthcare, as the sector added 46,800 jobs in August. While the industry is crucial, it is only 15% of the workforce, meaning the vast majority of workers are still not touched by recent events.
LinkedIn’s Kory Kantenga described, “For 85% of workers, they’re not getting to see a lot of the new jobs being created.” Even pay growth is slowing down, with average hourly earnings rising by only 3.7% in August, down from 3.9% in July. Economists are warning that the labour market is more vulnerable when growth is concentrated to a single industry.
A cooling economy raises concerns
Other signs also indicate that the economy is decelerating. Private employment has slowed, unemployment claims have increased, and layoffs have surged. For the first time in four years, the number of available jobs is less than the number of unemployed individuals.
The steady expansion and deepening gains in the healthcare sector highlight the risks: were anything to disrupt that sector, aggregate employment would drop precipitously. The statistics make it plain: the US labour market will soon be operating in uncharted territory as prospects for employment become ever less available to the typical American.
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What this means for workers
For many job seekers, the labour market is tough. Companies are waiting for better economic signals, and much of the job growth is in certain sectors like healthcare. Compensation falls behind, and uncertainty at the federal level adds another degree of wariness to employers.
In brief, the US economy is demonstrating that although there are still some areas of opportunity, generally the job market is slowing—and Americans seeking new jobs might find they have to be patient and flexible in the coming months.
