BGSF August 2025 Jobs Report: Hiring Stalls as Labor Market Cools Further

After months of slowdowns, August finally hit the brakes.

According to the Bureau of Labor Statistics (BLS), total nonfarm payroll employment added just 22,000 jobs in August, a figure that underscores a labor market that’s been hovering near stagnation since April. The unemployment rate ticked in at 4.3 percent, essentially unchanged from the prior month.

While there are still pockets of growth, notably in healthcare and social assistance, those gains were largely offset by declines in federal government jobs, mining, and manufacturing, where strikes played a significant role.

Key August 2025 Highlights:

• Total Jobs Added: +22,000

• Unemployment Rate: 4.3 percent (unchanged)

• Hourly Earnings: Up 0.3 percent month-over-month, now at $36.53

• Labor Force Participation Rate: 62.3 percent (unchanged)

• Average Workweek: 34.2 hours

Slowing Momentum Signals Shift in Employer Behavior

Let’s be real—August’s numbers mark one of the softest months of job growth in 2025. This isn’t a surprise. Since peaking earlier this year, hiring momentum has been slowing.

The fact that job gains have “changed little” since April, as the BLS puts it, sends a clear message: employers are holding steady, opting to avoid overexpansion in an uncertain environment. Revisions to prior months (June down to -13,000 and July up to +79,000) show that even recent gains weren’t as solid as first thought.

What it means for employers: Now is the time to evaluate retention strategies and focus on strategic hiring rather than broad expansion. Talent remains available, but the labor force is no longer growing at the same pace it once was.

“This month’s numbers confirm what we’ve been advising clients for the past quarter—growth is no longer across the board, it’s strategic. Employers are being more selective and focused in their hiring, and that means job seekers need to be more intentional too,” said Kelly Brown, Interim CEO and Property Management Division President at BGSF. “We’re helping our clients think more holistically about workforce planning, balancing short-term needs with long-term talent strategies.”

Healthcare Keeps Hiring, But Even That’s Slowing

Healthcare once again led job creation with 31,000 new jobs, but even that’s below its 12-month average of 42,000. Hiring continues in ambulatory services, nursing care, and hospitals, but at a more moderate pace.

Social assistance also saw growth, with 16,000 jobs added, mostly in individual and family services.

Meanwhile, federal government jobs fell by 15,000, bringing the total loss to 97,000 since January. Manufacturing lost 12,000 jobs, with the transportation equipment sector down by 15,000 due in part to strike activity.

What it means for job seekers: Opportunities remain, especially in health care and social services, but they’re becoming more competitive. Those with industry-specific experience and flexibility will stand out.

Wages and Hours: Small Gains, Stable Schedules

Wage growth was modest in August, with average hourly earnings rising by 10 cents to $36.53, marking a 3.7 percent increase year-over-year. For production and nonsupervisory employees, earnings rose by 12 cents to $31.46.

Average workweeks remained steady at 34.2 hours for the third consecutive month.

What it means for both sides: For workers, wage growth isn’t keeping pace with past inflationary trends so that financial pressures may be increasing. For employers, this is a key time to review compensation strategies to remain competitive in attracting and retaining top talent.

Final Takeaway: Hiring Hits a Plateau

August’s report confirms what many employers and job seekers have been feeling—the job market is cooling, but it isn’t collapsing. For businesses, this presents an opportunity to reassess workforce strategies, upskill existing talent, and remain agile. For job seekers, now is the time to get laser-focused, sharpen your resume, and align your skillset with in-demand roles.

Let’s Connect

At BGSF, we’re here to help both businesses and job seekers navigate these shifts. Whether you’re looking to hire top talent or land your next role, we’ve got the expertise to guide you. Let’s connect and make 2025 a year of opportunity! Contact BGSF today!

About BGSF

BGSF is a leading workforce solutions provider that connects employers with top talent across various industries, including property management, professional services, IT, and managed solutions. With a commitment to building strong partnerships, BGSF delivers innovative staffing strategies that empower businesses and job seekers alike.

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