The unemployment rate rose to 4.3% in August 2025, the highest level since late 2021.

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The Bureau of Labor Statistics reported unemployment rose from 4.2% in July to 4.3% in August 2025—the highest rate since October 2021, outside pandemic spikes. This 0.1 percentage point increase means roughly 160,000 more Americans were unemployed. The rise coincided with weak job creation, signaling labor market softening that prompted Federal Reserve officials to consider rate cuts. BLS uses the Current Population Survey of 60,000 households monthly to calculate this rate.

The unemployment rate rose to 4.3% in August 2025, the highest level since late 2021.

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