Remove the healthcare sector and U.S. job growth is floundering.
Healthcare created 31,000 jobs in August, lower than the 42,000 average monthly gain over the past 12 months but still accounting for essentially all the new jobs in the U.S. economy in an otherwise stagnant August, the Bureau of Labor Statistics reports.
Within healthcare, BLS reports that ambulatory care accounted for 13,000 jobs, while residential care and hospitals each accounted for 9,000 new jobs.
Overall, BLS' August jobs report shows that nonfarm payroll employment has all but stalled, growing by an anemic 22,000 jobs, about 50,000 fewer jobs than anticipated by analysts, with the loss of 15,000 federal government jobs depressing the numbers. Nearly 100,000 federal jobs have been eliminated since the start of 2025.
The U.S. has created 598,000 new jobs so far in 2025, compared with 1.14 million jobs created this far in 2024, BLS data show.
The unemployment rate for the month ticked up to 4.3%, the highest level since 2021, with 7.4 million people classified as unemployed.
Manufacturing lost 12,000 jobs and is down 78,000 jobs over the past 12 months, wholesale trade lost 12,000 jobs, and mining and oil and gas extraction lost 6,000 jobs. Transportation equipment manufacturing was down 15,000 jobs for the month, which BLS attributed to “strike activity.”
Job gains were also seen in social services (+16,000).
Average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3%, to $36.53 in August. Over the past 12 months, average hourly earnings have increased by 3.7%. In August, average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4%, to $31.46.
BLS statistics for August and July are considered preliminary and are subject to revision. As such, total non-farm payroll employment for June was revised down by 27,000, from +14,000 to -13,000, the first time that the economy has reported net job losses since the pandemic. July jobs were revised up by 6,000, from +73,000 to +79,000.
With these revisions, employment in June and July combined is 21,000 lower than previously reported.
John Commins is the newsletter editor for HealthLeaders.
KEY TAKEAWAYS
Ambulatory care accounted for 13,000 jobs, while residential care and hospitals each accounted for 9,000 new jobs.
Overall, BLS’ August jobs report shows that nonfarm payroll employment grew by an anemic 22,000 jobs, about 50,000 fewer jobs than anticipated by analysts.
The loss of 15,000 federal government jobs depressing the numbers. Nearly 100,000 federal jobs have been eliminated since the start of 2025.
The unemployment rate for the month ticked up to 4.3%, the highest since 2021, with 7.4 million people classified as unemployed.