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The Progressive

NewsWire

A project of Common Dreams

For Immediate Release

Noisy Jobs Report Offers Little Comfort for Jobseekers Across Stumbling Economy

Hiring propped up by start of school year, modest wage gains gobbled up by Trump’s inflation, and no clear signal about where labor market goes from here

Today’s jobs report shows the economy added 162,000 jobs in August, while the unemployment rate held steady at 4.1%. Job gains averaged just 31,000 per month over the past year and labor force participation remains near recent lows at 61.6%.

Today’s noisy report offers little guidance for policymakers navigating the difficult waters of persistent inflation and a sluggish labor market that continues to look fragile under the hood. Those looking for a clear indication of a labor rebound will be left disappointed. Restaurants and bars drove more than one-third of job growth over the past month, and back-to-school season hiring drove roughly one-fourth. Wage growth slowed further in August, falling to 3.1% over the past year for private sector workers, the weakest in four years and below last month’s inflation rate. As Trump continues to impose new tariffs and wage his war on Iran, fueling inflation, working families are stretching paychecks to the brink. The average duration of jobless spells is 26.3 weeks – up more than a week from July – and nearly 2 million Americans have been unemployed for more than six months.

Groundwork Collaborative’s Vice President of Policy, Advocacy, and Research, Elizabeth Pancotti, released the following statement:

“Policymakers should look past the noise of today’s jobs report. Hiring remains concentrated in limited sectors of the economy. Worse, gains in the health care industry, which has propped up the job market for the past two years, have stagnated as we stare down the economic effects of the Republican budget law’s Medicaid cuts. Minimal wage gains continue to be drowned out by rising prices stemming from Trump’s war in Iran and ever-changing tariff regime. While this month’s report may look like the labor market has turned the corner, make no mistake – Trump’s economy is on life support.”

The Groundwork Collaborative is dedicated to advancing a coherent and persuasive progressive economic worldview and narrative capable of delivering meaningful opportunity and prosperity for everyone. Our work is driven by a core guiding principle: We are the economy. Groundwork Collaborative envisions an economic system that produces strong, broadly shared prosperity and power for all people, not just a wealthy few.