U.S. job growth slowed to a crawl in August as losses in wholesale trade and manufacturing offset gains in health care, underscoring uneven momentum across the labor market.
Employers added just 22,000 jobs last month, the U.S. Bureau of Labor Statistics reported, leaving overall payrolls little changed since April. The unemployment rate held at 4.3%.
Wholesale trade shed 12,000 jobs in August, marking the third straight month of declines. Since May, the sector has lost 32,000 positions as distributors contend with softer demand, tariff-related cost pressures, and sluggish activity in goods-producing industries. Economists often view wholesale employment as a bellwether for broader supply chain health, making the sector’s losses a notable drag on the report.
“August’s job market data reflects a manufacturing and distribution landscape where companies are made timid by uncertainty, anxious of re-accelerating inflation, and bruised by a volatile and erratic tariff policy,” said Alex Chausovsky, director of analytics and consulting at Bundy Group. “Business-friendly trade dynamics aren’t likely to emerge before the end of 2025, extending the current trajectory of malaise and defensive posturing by firms through the end of the year and, likely, beyond.”
Manufacturing payrolls also declined by 12,000 in August and are down 78,000 over the past year. Transportation equipment manufacturing alone lost 15,000 jobs, partly due to strike activity.
The weakness in wholesale and manufacturing contrasted with steady hiring in health care, which added 31,000 jobs in August, including gains in hospitals, ambulatory care, and nursing facilities. Social assistance payrolls rose by 16,000.
Employment in the federal government fell by 15,000 last month and dropped by 100,000 since January. Mining, quarrying, and oil and gas extraction declined by 6,000 jobs. Other major industries, including construction, retail, transportation and warehousing, and financial services—were unchanged.
Wage growth remained steady. Average hourly earnings for all private-sector workers rose by 10 cents, or 0.3%, to $36.53 in August, up 3.7% year over year. The average workweek held at 34.2 hours.
Revisions trimmed earlier job totals: June payrolls are now estimated to have declined by 13,000, while July’s gain was revised slightly higher to 79,000. Combined, the adjustments leave employment 21,000 lower than previously reported.
For distributors, the latest data confirms mounting strain. Wholesale trade, once a steady source of jobs tied to the flow of goods, is now contracting amid shifting demand and persistent cost pressures.
“This is particularly true for companies dependent on large, capital-intensive projects,” Chausovsky said. “Distributors should brace for stronger macroeconomic headwinds in the months to come, with technology sectors like semiconductors, data centers, and AI infrastructure providing the most notable exception. Revenue growth in the coming quarters will be driven by price increases and not underlying expansion of demand.”
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