U.S. Unemployment Holds at 4.3 Percent as Healthcare Gains Offset Government and Energy Losses
September 5, 2025 – Employment rose by 22,000 in August as the U.S. unemployment rate stands at 4.3 percent, according to the most recent U.S. Bureau of Labor Statistics report. A job gain in healthcare was partially offset by losses in federal government and in mining, quarrying, and oil and gas extraction.
Among the major worker groups, the unemployment rates for adult men (4.1 percent), adult women (3.8 percent), teenagers (13.9 percent), Whites (3.7 percent), Blacks (7.5 percent), Asians (3.6 percent), and Hispanics (5.3 percent) showed little or no change in August. Among the unemployed, the number of new entrants decreased by 199,000 in August to 786,000, largely offsetting an increase in the prior month. New entrants are unemployed people who are looking for their first job.
The number of long-term unemployed (those jobless for 27 weeks or more) changed little at 1.9 million in August but has increased by 385,000 over the year. In August, the long-term unemployed accounted for 25.7 percent of all unemployed people. In August, the labor force participation rate changed little at 62.3 percent, and the employment-population ratio was unchanged at 59.6 percent. Both measures have declined by 0.4 percentage point over the year.
The number of people employed part time for economic reasons, at 4.7 million, changed little in August. These individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs. The number of people not in the labor force who currently want a job, at 6.4 million, changed little in August but was up by 722,000 over the year. These individuals were not counted as unemployed because they were not actively looking for work during the four weeks preceding the survey or were unavailable to take a job.
Breaking it Down
- In August, healthcare added 31,000 jobs, below the average monthly gain of 42,000 over the prior 12 months. Employment continued to trend up over the month in ambulatory healthcare services (+13,000), nursing and residential care facilities (+9,000), and hospitals (+9,000).
- Employment in social assistance continued to trend up in August (+16,000), reflecting continued job growth in individual and family services (+16,000).
- Federal government employment continued to decline in August (-15,000) and is down by 97,000 since reaching a peak in January. (Employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.)
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- In August, employment in mining, quarrying, and oil and gas extraction declined by 6,000, after changing little over the prior 12 months.
- Wholesale trade employment continued to trend down in August (-12,000) and has fallen by 32,000 since May.
- Manufacturing employment changed little in August (-12,000) but is down by 78,000 over the year.
- Employment in transportation equipment manufacturing declined by 15,000 over the month, in part due to strike activity.
- Employment showed little change over the month in other major industries, including construction, retail trade, transportation and warehousing, information, financial activities, professional and business services, leisure and hospitality, and other services.
The Private Sector
Private sector employment increased by 54,000 jobs in August with leisure and hospitality and construction performing well despite a broader month-over-month slowdown in hiring, according to the ADP National Employment Report produced by ADP Research in collaboration with the Stanford Digital Economy Lab.
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The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees. The figure came in well above economist forecasts for an increase of 65,000, according to a Dow Jones consensus.
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Dr. Nela Richardson, chief economist, ADP. “A variety of things could explain the hiring slowdown, including labor shortages, skittish consumers, and AI disruptions.”
ADP said leisure and hospitality jobs rose by 50,000 and construction by 16,000, but other areas were soft. Manufacturers shed 7,000 jobs. Education and health services employment fell by 12,000. The trade, transportation and utilities sectors cut 17,000 jobs.
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Contributed by Scott A. Scanlon, Editor-in-Chief; and Dale M. Zupsansky, Managing Editor – Hunt Scanlon Media
