US Nonfarm Payroll Increases by 73,000 in July; Unemployment at 4.2%

On Friday, the US Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment increased by 73,000 in July. Monthly job gains have changed little since April.

The unemployment rate held steady at 4.2%, with 7.2 million people unemployed. The rate has remained in a narrow 4.0–4.2% range since May 2024.

Growth was led by the following sectors:

• Health care added 55,000 positions—above the average monthly gain of 42,000 over the past year.
• Social assistance continued to trend upward, adding 18,000 jobs, largely in individual and family services.

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

Federal government employment continued its downward trend, falling by 12,000 in July. Since peaking in January, federal payrolls have declined by 84,000. The BLS noted that workers on paid leave or receiving ongoing severance pay are still counted as employed in the establishment survey.

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 125,000—from 144,000 to 19,000. June’s gain was revised down by 133,000—from 147,000 to 14,000. Combined, employment in May and June is now estimated to be 258,000 lower than previously reported.