What were the employment trends in August 2025?
The August jobs report showed meager job growth of 22,000, with the unemployment rate edging up to 4.3% from the 4.2% reported in July. The pace fell well below the prior 12 months, when 128,000 jobs were added. Earnings growth also ebbed, slowing to 3.7%. The health care and social assistance sectors added workers, while federal government employment continued to shrink.
What else do we know about today’s job market?
Earlier this week, the July JOLTS report showed stability in job quits, which numbered 3.2 million and held at a 2.1% rate. Meanwhile, job openings edged down to 7.2 million, dropping the rate to 4.3%, on par with post-pandemic lows. Both moves are a sign of weaker conditions for job seekers. Underscoring the tougher job market for workers, the number of unemployed job seekers exceeded the number of job openings for the first time since April 2021.
What does today’s data mean for homebuyers, sellers, and the housing market?
The labor market is not the only economic area with a shifting balance. Home sales activity and the housing market generally remain stuck as a formerly red-hot seller’s housing market has balanced. Homebuyers grapple with a lack of affordability, sellers contend with more competition, and builders deal with lower buyer demand. These conditions haven’t spelled catastrophe, but they have created a cruel summer for the housing market in which many are unhappy, each in their own way.
Looking ahead, ongoing wage growth is one of three keys needed to restore homebuyer affordability. In fact, research shows that despite the general loss of buying power due to higher mortgage rates nationwide, a handful of metro areas actually saw homebuying power tick modestly higher for the typical household due to exceptional income growth.
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