United States likely added 65,000 jobs last month, but jobseekers struggle and pay gains are meager

The U.S. job market rebounded in August after a poor July, though jobseekers face challenges and wage increases remain modest, according to the Labor Department's forthcoming report. Despite an unexpected loss of 23,000 jobs in July, employers added a net 65,000 positions last month, according to a forecasters' survey by data firm FactSet.

The unemployment rate is expected to rise to 4.2% from 4.1% in July. While the labor shortage stems from President Trump's immigration policies and the retirement of baby boomers, businesses are increasingly relying on technology to replace human labor. Despite a low number of layoffs, companies are cautious about hiring, resulting in a "no-hire, no-fire" labor market. Wage gains for the year were projected to be only 3%, the weakest increase since May 2021.