Jobs crisis? America adds just 54,000 positions in August as market weakens

Private sector hiring slowed sharply in August, only 54,000 jobs were added, way below the 75,000 forecast by economists, as per the ADP data. The number is also much lower than the revised 106,000 jobs gained in July. “The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Nela Richardson, ADP’s chief economist.

Richardson blamed the slowdown on consumer worries, labor shortages, and disruptions from artificial intelligence. Some industries lost jobs in August such as trade, transportation, and utilities dropped 17,000 jobs, as reported by CNBC.

Leisure jobs rise but other sectors fall

Education and health services fell by 12,000 jobs. Losses were partly balanced by a surge in leisure and hospitality, which added 50,000 jobs.

ALSO READ: Lotus to cut 550 UK jobs as sportscar maker restructures amid tariffs and market pressure

Wages stayed steady in August as workers who kept their jobs got a 4.4% pay rise year-over-year and others who switched jobs saw a 7.1% increase. The ADP report shows a weak labor market trend overall.

Jobless claims and Fed rate cut hopes

Jobless claims jumped to 237,000, up 8,000 from the previous week, and higher than the estimates. The Job Openings and Labor Turnover Survey showed one of the lowest job openings in July since 2020, as per the government figures released Wednesday and stated by CNBC report. Now the official U.S. jobs report is in focus, which will come out on Friday, and is expected to show 75,000 non-farm payrolls added in August, close to last month's numbers.

Economists also predict the unemployment rate will jump to 4.3% from 4.2%. Labor market weakness has pushed traders to expect a Federal Reserve rate cut this month. The odds of a rate cut are now 97.4%, up from 96.6% a day earlier, as per the report by CNBC.

FAQs

Q1. Why did the U.S. add only 54,000 jobs in August 2025?
The slowdown came from consumer worries, labor shortages, and disruptions linked to artificial intelligence, according to ADP.

Q2. Which industries lost the most jobs in August 2025?
Trade, transportation, and utilities lost 17,000 jobs, while education and health services dropped 12,000, ADP data shows.