The U.S. economy added a paltry 22,000 jobs in August, adding to concerns about the health of the economy while increasing the chances of interest rate cuts by the Federal Reserve.

The unemployment rate ticked up to 4.3 percent, rising for the second month in a row, while the labor force participation rate increased after falling since April.

The data from the Labor Department followed a similarly dismal jobs report for July that showed an average of just 35,000 jobs added to the economy from May to July. The August report brings the three-month average down to 29,000 jobs.

Here are five takeaways on the new report.

Economy lost jobs for the first time since 2020

The latest jobs report includes further revisions to previous months, including an estimate that the economy lost 13,000 jobs in June.

That's the first time a jobs report registered a negative jobs month for the economy since December 2020, when the economy shed 183,000 jobs.

The August report also increases the ratio of the number of those seeking jobs to the number of jobs open. There are now about 200,000 more people looking for work in the U.S. than there are available jobs.

It appears this is all leading to a slower growth in wages, which already have had trouble keeping up with inflation.

Private average hourly earnings are up 3.6 percent annually over the last three months, compared to 4-percent growth last year when inflation was mostly falling.

“Real wage growth is trending down,” Preston Caldwell, U.S. economist at investment bank Morningstar, said in a Friday commentary.

Manufacturers call for an end to tariff actions

Businesses for months have complained that President Trump's tariff regime is slowing the economy, chiefly by adding uncertainty.

The tariffs are a potential drag on the economy since they raise costs for companies selling foreign-produced products in the U.S. and for consumers buying them.

But the on-and-off nature of Trump's tariffs has also drawn steady complaints from those who say businesses can't........

© The Hill