August 2025 Market Trends Report
The labor market is losing steam, with job gains, unemployment and labor force participation moving in a near sideways trajectory.
The unemployment rate is still healthy at 4.2%. However, it has slowly crept up from 4% in January, and the number of jobs added is the lowest since August of last year, according to data from the Bureau of Labor Statistics’ Employment Situation Summary.
The May and June jobs reports were also dramatically revised down, dropping to the lowest employment growth over three consecutive months since the 2020 mass layoffs in March and April.
The exceptionally concentrated nature of job gains amplified the softness of the report, with nearly half of all growth coming from health services and social assistance.
On the other hand, job losses are adding up across many industries, including manufacturing, government and professional and business services, which lost 10,000+ jobs each.
It’s clear that hiring rates have slowed to a crawl. The labor market that looked resilient in the face of market pressures all year is now showing glaring weakness.
Jobs Market Overview: July 2025
4.2%
Overall unemployment rate
Unemployment and layoff activity still remains low, keeping the jobs report stable alongside otherwise unsettling indicators.
73k
Jobs added
Hiring rates fell sharply in contrast to economists’ predictions of 100,000 job gains in July.
62.2%
Labor force participation rate (LFPR)
The LFPR slightly dropped from 62.3% in June and from an annual high of 62.6% in January.
Industry Employment Trends
OVERALL ECONOMY
+73k
Monthly job change
(+1,536,000 year over year)
| Industry | Monthly Job Change | YOY Difference |
| Manufacturing | -11k | -113k |
| Automotive | -2.4k | -35.7k |
| Warehousing & Storage | -6.4k | -38.6k |
| Architectural & Engineering | +6.7k | +47.4k |
| Construction | +2k | +96k |
Source: Bureau of Labor Statistics' Economic News Release
Aviation Outlook
"Air transportation is soaring in 2025, and it’s no secret the industry is facing a wave of skilled worker retirements. On top of that, non-aviation companies are poaching technicians, leaving the industry with a dwindling workforce. It’s become clear that ad hoc hiring is no longer the way to go.
Instead, successful organizations are launching capacity planning efforts alongside programs to attract new recruits and retain existing talent. These programs include cross utilization, training and upskilling opportunities that appeal to skilled workers."
Anthony Sanzone
Director of Strategic Sales — Aviation, Airforce & Defense
Sector-by-Sector News: July 2025
Aviation Jobs Report
Aviation Monthly Employment Change: +2,500 jobs
While the broader jobs report is a greying horizon, the air transportation industry has shown strength. Hiring has increased slowly yet consistently through most of the year, while talent pools are recessing.
For decades, aviation companies have navigated the imbalance of new technicians entering the market against those leaving and retiring. They’re also competing against other industries to keep talent from leaving the challenging and demanding aviation industry.
In this kind of market, capacity planning is essential. The most successful companies are integrating hiring projections into their overall talent management efforts. This includes creating a work environment that’s appealing to workers with scalable training capacity, upskilling opportunities and cross utilization.
Construction Jobs Report
Construction Monthly Employment Change: +2,000 jobs
Construction employers added 2,000 jobs in July, including a gain of 6,400 jobs in the nonresidential sector and a loss of 4,400 in residential.
All job growth was concentrated in specialty trades and heavy and civil engineering, and moderate losses spread across the residential sectors.
Rising material costs, higher interest rates and economic uncertainty are likely responsible for hiring downturns within the industry. These factors can drive up delivery costs and diminish contractor margins, rendering more projects uneconomical.
Though employment growth was sparse overall, nonresidential construction is growing at twice the pace of the larger industry over the past 12 months. Associated Builder and Contractors (ABC) anticipates this trend of nonresidential strength and residential weakness will continue through the second half of the year.
Month-over-month job changes:
Nonresidential:
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Building: -1,500 jobs
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Heavy and civil engineering: +6,000 jobs
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Specialty trade contractors: +1,900 jobs
Residential:
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Building: -1,400 jobs
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Specialty trade contractors: -3,000 jobs
Manufacturing Jobs Report
Manufacturing Monthly Employment Change: -11,000 jobs
June Manufacturing PMI: 48%
*A PMI below 50% suggests economic activity is expanding.
Manufacturing hiring continued its steadfast downturn in July, losing 11,000 jobs month over month and a hefty 113,000 jobs year over year. The Institute for Supply Management’s Manufacturing PMI has also contracted 31 out of the past 33 months.
Nearly all indices diminished in July, including new orders, backlogs, employment, inventories, and exports and imports, while prices are increasing.
According to ISM survey respondents, the uncertainty of tariff policies are curbing project investments and slowing new orders and inventory replenishments. Manufacturers also report ongoing strain from assessing geopolitical risk and adjusting sourcing strategies to mitigate tariff fallout.
Manufacturing industries that reported growth in July include:
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Apparel, Leather & Allied Products
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Plastics & Rubber Products
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Nonmetallic Mineral Products
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Textile Mills
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Miscellaneous Manufacturing
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Furniture & Related Products
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Primary Metals
Manufacturing industries that contracted in July include:
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Printing & Related Support Activities
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Paper Products
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Chemical Products; Machinery
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Wood Products
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Fabricated Metal Products
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Computer & Electronic Products
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Transportation Equipment
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Electrical Equipment, Appliances & Components
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Food, Beverage & Tobacco Products