Last month’s Jobs Report shocked investors showing massive downward revisions in the number of jobs added.
US job growth stalls: Just 73,000 jobs added in July, with ‘stunning’ downward revisions to recent months
CNN, August 1, 2025
The August Jobs Report was released this morning and the number of jobs added continued to disappoint, with the lowest pre-revision addition of the year at only 22 thousand jobs. And the June figure was revised to show a loss of 13 thousand jobs. This is well below the initially reported figure of 147 thousand jobs added and marks the first negative month since December 2020.
The significant decrease in jobs added is worrisome for the labor market, and the unemployment rate paints an even more troublesome picture rising to 4.3% – its highest level since late 2021.
This breakout to new highs in the unemployment rate is an extremely concerning sign for the U.S. economy. It is especially problematic following the triggering of the InvesTech Recession Rule in May of last year. This signal triggers when the unemployment rate reaches +0.6 percentage points from its cycle low and has preceded every recession over the last 77 years with only one false signal in 1959.
The rapid deterioration in the labor market cements the Fed rate cut in September and raises the probability that they will cut again before the end of the year.