US Nonfarm Payroll Decreases by 23,000 in July; Unemployment at 4.1%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment fell by 23,000 in July, following an average monthly gain of 34,000 over the prior 12 months.

The unemployment rate fell 0.1% to 4.1%, with 6.9 million people unemployed.

Employment growth was led by health care, which added 22,000 jobs, albeit below its average monthly gain of 36,000 over the prior 12 months.

Job losses were concentrated in:

• Local government education, which fell by 50,000 jobs after showing little net change over the prior 12 months.
• Retail trade, which lost 19,000 jobs after showing little net change over the prior 12 months.
• Financial activities, which declined by 14,000 jobs. Employment in the sector is down by 121,000 since a recent peak in May 2025.

Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; transportation and warehousing; information; professional and business services; social assistance; leisure and hospitality; and other services.

Monthly Revisions

Revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors.

The change in total nonfarm payroll employment for May was revised down by 66,000, from an increase of 129,000 to an increase of 63,000, and the change for June was revised down by 37,000, from an increase of 57,000 to an increase of 20,000. With these revisions, employment in May and June combined is 103,000 lower than previously reported.