July jobs report: payrolls fell 23,000 and unemployment edged down to 4.1%
U.S. nonfarm payroll employment fell by 23,000 in July 2026, while the unemployment rate changed little at 4.1%, the Bureau of Labor Statistics reported Aug. 7. About 6.9 million people were unemployed.
The report also sharply reduced the job gains previously reported for May and June. Combined employment for those two months was revised down by 103,000 jobs.
Government education and retail lost jobs
Local-government education employment fell by 50,000 in July, and retail trade lost 19,000 jobs. Financial activities continued to trend down, losing 14,000 jobs.
Health care added 22,000 jobs, including 18,000 in ambulatory health-care services. Most other major industries changed little during the month.
Participation held at 61.4%
The labor-force participation rate was 61.4%, and the employment-population ratio was 58.9%. Both changed little in July, though each was lower than in January.
Average hourly earnings for private nonfarm workers rose 2 cents to $37.62 and were 3.2% higher than a year earlier. The average workweek remained 34.3 hours.
May and June gains were cut by 103,000
The May payroll increase was revised from 129,000 to 63,000, and June was revised from 57,000 to 20,000. Monthly estimates can be revised as additional employer reports arrive and seasonal factors are recalculated.
The August Employment Situation report is scheduled for Sept. 4.
Sources
- Employment Situation Summary, July 2026, U.S. Bureau of Labor Statistics
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