US job gains slump in August as unemployment rises to 4.3%

The U.S. economy added just 22,000 jobs in August and the unemployment rate rose to 4.3 percent, the Bureau of Labor Statistics said Friday, a stark slowdown that officials and economists linked to trade frictions, policy shifts and growing uncertainty that have chilled hiring across multiple industries. The report, the first since President Donald Trump dismissed the bureau's commissioner over last month's revisions, showed a labor market losing momentum as openings and payroll gains retreat.

The BLS data included a surprising downward revision that showed employers shed 13,000 jobs in June, marking the first monthly loss since December 2020, and left the three-month average of job gains far below levels needed to keep pace with population growth. Job openings fell to 7.18 million in July, the lowest in 10 months, according to JOLTS data, with declines concentrated in health care, retail trade and leisure and hospitality. Layoffs edged higher and the number of workers quitting held steady at 3.2 million.

Economists said a mix of factors has sapped hiring. Tariffs and trade uncertainty, along with higher interest rates and tighter business investment, have made firms more...