WASHINGTON, D.C. — Total nonfarm employment in the United States decreased by 23,000 jobs in July, according to the U.S. Bureau of Labor Statistics (BLS). Not only did July show an unexpected decline from the 83,000-figure forecasted by Dow Jones economists as reported by CNBC, but the BLS also revised both May and June’s job reports by a combined 103,000 jobs. The counts for May and June were +63,000 and +20,000, respectively.
The unemployment rate simultaneously edged down to 4.1 percent — its lowest level since June 2025 — due mostly to another significant decline in the labor force.
Among employment sectors, healthcare continued its upward trend with +22,000 jobs, but at a slower pace than the average monthly gain over the previous 12 months (+36,000). Within the sector, ambulatory services added 18,000 jobs.
Retail trade lost 19,000 jobs in July as employment declined in warehouse clubs, supercenters and other general merchandise retailers (-21,000), as well as in gas stations and fuel dealers (-5,000). Many national media outlets are reporting that retailers are cutting costs and slowing down hiring due to wider economic pressures, like higher tariffs and inflation.
However, sporting goods, hobby, musical instrument, book and miscellaneous retailers added 10,000 jobs. Retail trade employment had previously shown little net change over the prior 12 months.
Local government education jobs — such as public school teachers, school district administrative staff, library workers, campus support personnel and facility maintenance crews — decreased by 50,000 in July, which the BLS attributed to seasonality as school districts typically trim down staff sizes in the summer months.
In addition, employment in financial activities continued to trend down in July (-14,000), reflecting losses in credit intermediation (-9,000), as well as insurance carriers and related activities (-7,000). Financial sector employment has suffered a major drop (-121,000) since its peak in 2025, according to the BLS.
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; and leisure and hospitality.