Key takeaways:

• U.S. payrolls grew by 22,000 in August
• Unemployment rate held nearly unchanged at 4.3%
• A preliminary annual benchmark indicates roughly 911,000 fewer jobs in the 12 months through March 2025 than first reported

The U.S. added 22,000 jobs in August, with unemployment at 4.3%, according to the Bureau of Labor Statistics. The slower pace of hiring underscores the importance of emergency savings, as many households report having limited financial buffers.

The latest employment snapshot reflects a cooler labor market. August brought 22,000 new nonfarm jobs, a softer pace than earlier this year, while unemployment rose 0.1% to 4.3% month-over-month, according to the Bureau of Labor Statistics.¹

The labor force participation rate showed little change last month at 62.3% — meaning just over 6 in 10 people ages 16 and older were either working or actively looking for work.² The jobs report also showed that the employment-population ratio held at 59.6%, reflecting the share of the overall population that is currently employed.

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Revisions deepen the slowdown narrative

Monthly revisions recast the summer’s strength. June was revised down to a small job loss of 13,000, instead of the 147,000 new jobs previously reported, and July was revised up modestly from the 73,000 originally reported but still subdued at 79,000. The bigger reset came with the preliminary annual benchmark, which — based on unemployment-insurance tax records — suggests the economy added about 911,000 fewer jobs over the 12 months ending March 2025 than initially estimated.⁴ That lowers the average monthly pace over that period and underscores a labor market that has been cooler beneath the surface.⁵

Healthcare and social assistance add jobs

Healthcare carried the bulk of job growth, with 31,000 jobs added, below the industry’s 42,000 average monthly gain over the past year.⁶ Social assistance rose by 16,000, reflecting continued growth in individual and family services.⁷

Federal government employment declined by 15,000, while construction, retail trade, transportation and warehousing, and financial activities, showed minimal change.⁸ 

Average hourly earnings for employees on private nonfarm payrolls rose by 10 cents, or 0.3%, to $36.53; over the past year, wages rose 3.7%.⁹

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Why emergency savings matter 

Periods of slower hiring underscore the need for financial preparedness. Empower research found that 42% of Americans say their current savings wouldn’t help if they lost their job today. At the same time, 31% of respondents reported adding to their savings in the past month, and 75% agreed that having an emergency fund is essential to financial security.

Median balances remain low, according to Empower data. A typical household has $500 in emergency savings, with Baby Boomers saving around $2,000, Gen X $500, Millennials $300, and Gen Z $400. In addition, 29% said they would be unable to handle an unexpected expense of over $400.

Other Empower findingsshow that 71% of respondents said a $5,000 windfall would improve their financial happiness for at least six months. Taken together, the data show how even relatively modest financial cushions can provide stability in times of slower job growth.

What to watch next

• Real earnings data on Sept. 11 will show whether wage growth is keeping pace with inflation.
• September jobs data, due Oct. 3, will test whether August’s slowdown is a one-month dip or part of a longer trend.

Data details at a glance

• Payrolls: +22,000 (August)
• Unemployment rate: 4.3%
• Wages: +0.3% month over month; +3.7% year over year
• Revisions: June –13,000; July +79,000
• Preliminary benchmark (year through March 2025): –911,000 jobs

Source: Bureau of Labor Statistics Employment Situation Summary