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Most of us here are not dependent on employment. We may not relate to the throes of unemployment's full impact on the economy. This may seem very abstract.
As this worsens, your investments can get into serious trouble.
AI Overview
Unemployment in 2025 is showing signs of worsening, with the US unemployment rate hitting 4.3% in August, its highest point since 2021. Recent revisions revealed that the job market is weaker than previously thought, with significantly fewer jobs added through March 2025 than initially reported, a trend that could continue. While economists' forecasts vary, many expect continued job growth slowdown and a further rise in the unemployment rate throughout the rest of the year.
Key Indicators and Trends
Rising Unemployment Rate: The national unemployment rate rose to 4.3% in August 2025, the highest since 2021.
Weakening Job Growth: The economy added only 22,000 jobs in August 2025, far fewer than expected, and preliminary figures suggested a loss of 13,000 jobs in June.
Benchmark Revisions: The Bureau of Labor Statistics (BLS) released revised figures indicating that almost a million fewer jobs were added over the 12 months ending March 2025 compared to initial reports.
Job-Finding Difficulty: The widening gap between job seekers and available positions is making it harder for those who are unemployed to find new work, with the Economic Policy Institute highlighting difficulties for some workers to re-enter the labor market.
Economic Factors at Play
Slowing Hiring: Many economists anticipate a significant slowdown in hiring, with some predicting average job growth of only 75,000 to 117,000 jobs per month in the coming year, which is well below historical averages.
Post-Pandemic Normalization: The current economic climate follows a period of unusually strong post-pandemic demand, and the market is now slowing down.
External Shocks: Factors like tariffs have added to economic uncertainty, potentially worsening the slowdown and impacting jobs, according to Investopedia and USA Today.
