August Jobs Report: Slumping Job Market Reveals Impact of Trump Policies and Importance of Reliable Data

Nationwide—In August, the unemployment rate rose to 4.3% according to new data from the Bureau of Labor Statistics (BLS). Approximately 22,000 jobs were added last month, a significant slowdown in job creation. In addition, revised data shows that the economy lost jobs in June. In August, 7.4 million workers were unemployed. Rising unemployment among Black women, often a leading indicator of an economic slowdown, serves as another warning sign.

“The U.S. economy depends on reliable data. Understanding job market trends over the past month enables businesses and political leaders to plan and make informed decisions,” said Rebecca Dixon, president and CEO of the National Employment Law Project (NELP). “That is why NELP joins the wide range of economic analysts who are opposing the nomination of E.J. Antoni to run the BLS. We worry that, given Antoni’s past statements, the BLS could face political pressure to delay or obscure economic data that could embarrass President Trump or reveal the harmful effects of his anti-worker policies. The fact that today’s numbers were released as usual is a testament to the dedication and integrity of career economists and statisticians at the BLS.”

The newly released employment data clearly shows the impact of Trump administration policies. For example, federal government employment fell by 15,000 in August and is down by a total of 97,000 since January, following the administration’s mass firings of public servants, including key emergency management personnel, public health professionals, Social Security staff, and workers at national parks among many others. The full effect of federal job cuts will not appear in the employment data for several more months as many public workers are still on administrative leave.

The unemployment rate for Black workers in August was 7.5%, more than twice the rate for white workers (3.7%). Unemployment among Latinx workers was 5.3%. Among Asian workers the unemployment rate was 3.6%. Continuing disparities in unemployment rates are a result of structural racism in the U.S. labor market, including occupational segregation.

While racial disparities in employment are deeply rooted, the Trump Administration’s assaults on civil rights protections and attacks on efforts to advance diversity, equity, inclusion and accessibility in the workplace contribute to making them worse. In addition, the administration’s cuts to the federal workforce hit Black workers—particularly Black women—especially hard. As these attacks have increased, the unemployment rate for Black women has been rising steadily for the last three months, and reached 6.7% in August, the highest level since 2021.

Black women make up a disproportionate share of federal employees since the public sector has traditionally been a source of well-paying union jobs for workers who face more pervasive discrimination in the private sector. An analysis by the National Women’s Law Center finds that attacks on the federal workforce have targeted agencies where women and people of color make up the majority of the workforce. Trustworthy economic data is vital for understanding these trends and holding policymakers accountable for policies that contribute to them.

Reliable data about the nation’s rising unemployment rate is also critical for enabling policymakers to address the needs of workers who lose their jobs. Congress must enact The Unemployment Insurance Modernization and Recession Readiness Act, sponsored Senators Ron Wyden (D-OR) and Michael Bennet (D-CO) and Representative Don Beyer (D-VA). The bill sets nationwide standards for UI, mandating that states offer at least 26 weeks of unemployment benefits, raising benefit amounts to replace a greater share of workers’ prior earnings, and increasing coverage for part-time workers, temp workers, and workers whose earnings fluctuate over time. The bill also establishes a new, federally funded Jobseekers Allowance to support jobless workers who would not otherwise be covered by unemployment insurance and modernizes the Extended Benefits program that makes additional weeks of unemployment benefits available in times of high unemployment. State policymakers across the country should also act to improve their state unemployment insurance systems to better support workers and the economy.