July payrolls fell 23,000 as May and June gains were cut by 103,000
U.S. payroll employment fell by 23,000 in July, but the larger change in the labor-market picture came from revisions: May and June together were cut by 103,000 jobs, the Bureau of Labor Statistics reported Aug. 7.
May’s estimated gain was reduced from 129,000 to 63,000, and June’s gain was reduced from 57,000 to 20,000. July followed an average monthly gain of 34,000 over the prior year.
Losses were concentrated in several sectors
Local-government education lost 50,000 jobs, retail trade lost 19,000 and financial activities lost 14,000. Health care added 22,000, but that was below its average monthly gain of 36,000 during the prior year.
Most other major industries showed little change, including construction, manufacturing, transportation and warehousing, professional and business services, leisure and hospitality, and social assistance.
Unemployment edged down, but participation did not improve
The unemployment rate was 4.1%, and about 6.9 million people were unemployed. The labor-force participation rate held at 61.4%, while the employment-population ratio was 58.9%.
Average hourly earnings increased 2 cents to $37.62 and were up 3.2% from a year earlier. The average workweek stayed at 34.3 hours.
The first estimate can still change
BLS revises payroll estimates as more employer reports arrive and seasonal factors are updated. The August report is due Sept. 4, and a preliminary annual benchmark revision is scheduled for Aug. 28.
Sources
- Employment Situation Summary, July 2026, U.S. Bureau of Labor Statistics
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