September 2025 Market Trends Report
The labor market experienced a significant slowdown in August, following the already modest job gains of July (+73,000). According to the Bureau of Labor Statistics, employers added only 22,000 jobs last month, and unemployment increased to 4.3%.
August also saw revisions to previous jobs reports. July’s numbers were slightly revised upwards, while June’s figures were adjusted downward to -13,000, ending the second-longest streak of continuous job growth since COVID-era layoffs in December 2020.
The concentration of job growth is another potential warning sign in the report. Healthcare and social assistance added 46,800 jobs, meaning a combined 24,800 jobs were lost across all other industries.
Throughout 2025, job gains have been heavily skewed toward healthcare, while many goods-producing industries have stagnated amid economic uncertainty. Although unemployment remains historically low, it has reached a four-year high as the labor market appears to be stalling.
Jobs Market Overview: August 2025
4.3%
Overall unemployment rate
Unemployment and layoff activity still remains low but slightly increased from 4.2% in July.
22k
Jobs added
Hiring rates fell sharply from the already modest job gains in July (73,000).
62.3%
Labor force participation rate (LFPR)
The LFPR slightly increased from 62.2% in July but is still down from its annual high of 62.6% in January.
Industry Employment Trends
OVERALL ECONOMY
+22k
Monthly job change
(+1,466,000 year over year)
| Industry | Monthly Job Change | YOY Difference |
| Manufacturing | -12k | -78k |
| Automotive | -7.3k | -22.7k |
| Warehousing & Storage | +800 | -26.8k |
| Architectural & Engineering | -1.6k | +46.8k |
| Construction | -7k | +58k |
Source: Bureau of Labor Statistics' Economic News Release
Construction Outlook
"In 2025, rising material costs, higher interest rates and elevated demand for skilled workers have added constant pressure to the construction industry. To remain profitable, competitive businesses are finding creative ways to adapt and maintain control where they can.
Construction organizations always need great people to complete their projects. As prices fluctuate, they should get proactive and build agile partnerships with contingent workforce providers. This approach can secure fixed pricing in bids, softening tariff impact and accounting for market instability. It also creates opportunities to scale with the highs and lows of economic uncertainty."
Joshua Miles
Business Development Manager & Divisional Lead — Construction Support
Sector-by-Sector News: August 2025
Construction Jobs Report
Construction employment has declined over the past three months. In August, employers reduced hiring, resulting in a loss of 7,000 jobs overall, which includes 1,200 in non-residential construction and 8,500 in residential.
Job losses were widespread across all sectors, except for heavy and civil engineering construction, which added 2,300 jobs. Additionally, unemployment dropped to 3.2%, matching the lowest rate ever recorded in the industry.
Rising material costs, higher interest rates and economic uncertainty are likely responsible for the hiring downturn in the industry. These factors can drive up delivery costs and diminish contractor margins, making projects less economical, which could in turn drive down hiring rates.
Alternatively, contractors are optimistic about business over the next six months, according to Associated Builders and Contractors’ Construction Confidence Index. This is likely due to anticipated lower borrowing costs, which could increase profitability and accelerate investments in new building projects.
Manufacturing Jobs Report
Manufacturing Monthly Employment Change: -12,000 jobs
August Manufacturing PMI: 48.7%
*A PMI below 50% suggests economic activity is expanding.
Goods-producing industries, including manufacturing, have experienced significant job losses. Employers cut 12,000 jobs in August alone, contributing to a total of 78,000 year-over-year job losses.
Additionally, the manufacturing PMI remains in contraction territory, according to Institute for Supply Management (ISM). Since May 2022, ISM’s Employment Index has contracted 33 out of the last 40 months.
While demand was stable in August, with growth across two of the four PMI indicators (new orders and new export orders), future demand is uncertain, bringing declines in hiring and production. Many ISM survey respondents also cited tariffs as a dominant reason for slowing factory activity.
Manufacturing industries that reported growth in August include:
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Textile Mills
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Apparel, Leather & Allied Products
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Nonmetallic Mineral Products
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Food, Beverage & Tobacco Products
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Petroleum & Coal Productions
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Miscellaneous Manufacturing
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Primary Metals
Manufacturing industries that contracted in August include:
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Paper Products
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Wood Products
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Plastics & Rubber Products
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Transportation Equipment
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Furniture & Related Products
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Machinery
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Electrical Equipment, Appliances & Components
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Computer & Electronic Products
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Chemical Products
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Fabricated Metal Products
Warehousing & Storage Jobs Report
Warehousing & Storage Monthly Employment Change: +800 jobs
August Logistics Managers' Index (LMI): 59.3*
*An LMI reading above 50 indicates expanding logistics.
The Logistics Managers’ Index very slightly increased month over month by 0.1, reflecting moderately positive sentiment alongside conflicting indicators within the index (i.e., contracting transportation metrics and increasing inventory and warehousing metrics).
Throughout Q3, expanding inventory levels have continued to drive LMI growth and sparse hiring activity (+3,200 jobs since May and +800 in August).
Logistics activity is expanding, particularly in warehousing and inventory. While transportation metrics have slowed, smaller firms and upstream players are driving momentum.
To stay ahead of unpredictable inventory swings, flexible labor models are gaining taction, helping warehouses navigate economic uncertainty and talent shortages.