A “Split” Jobs Report for August

By SBE Council at 5 September, 2025, 4:24 pm

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by Raymond J. Keating -

The U.S. Bureau of Labor Statistics (BLS) has published another split jobs report.

The monthly employment report from the BLS offers data from two surveys. According to the establishment survey, nonfarm payrolls grew by a mere 22,000 in August. The only private sector area of growth was in health care and social assistance.

However, the household survey, which is more comprehensive, including better capturing startup and small business activity, told a different story for August, at least. Employment grew by 288,000, and the labor force increased by 436,000. The larger increase in the labor force versus the increase in employment explains the slight increase in the unemployment rate from 4.2 percent in July to 4.3 percent in August.

Also, the labor force participation rate inched up from 62.2 percent to 62.3 percent in August, while the employment population ratio remained steady at 59.6 percent.

So, for August, this is another month where the two surveys in this report - again, the establishment survey and the household survey - told different stories. These monthly differences wind up aligning over a stretch of months.

Since April of this year, the household survey shows an employment decline of 575,000, and a reduction in the labor force of 357,000. For good measure, both the labor force participation rate and the employment-population ratio have moved down (see the charts below). Also, over the same period, nonfarm payrolls increased by a meager 107,000.

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Source: Federal Reserve Bank of St. Louis, FRED

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Source: Federal Reserve Bank of St. Louis, FRED

Hope can be found in the August household survey data, but overall, the recent trend of employment stands as another question mark and concern as to where the economy is and might be headed.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of " The Weekly Economist " book series, and 10 Points from Walt Disney on Entrepreneurship .