U.S. nonfarm payroll employment decreased by 23,000 in July, while the unemployment rate stood at 4.1 percent, according to the Bureau of Labor Statistics. The agency described both measures as little changed, an important qualification because the payroll figure is an estimate drawn from a monthly employer survey rather than a complete count of every workplace.
The household survey put the number of unemployed people at 6.9 million. Both that total and the unemployment rate changed little during the month and over the year. Labor-force participation was 61.4 percent, and the share of the population that was employed was 58.9 percent. Although both were broadly steady in July, participation has declined 0.7 percentage point since January and the employment-population ratio has fallen 0.5 point.
Industry results were uneven. Local government education employment declined by 50,000, and retail trade lost 19,000 positions. Financial activities continued to trend lower, with employment down 14,000 in July and 121,000 below its May 2025 peak. Health care moved in the opposite direction, adding 22,000 jobs. That increase was smaller than the sector's average monthly gain of 36,000 over the previous year.
Wage and hours data showed limited movement. Average hourly earnings for private nonfarm employees rose by two cents to $37.62 and were 3.2 percent higher than a year earlier. The average private-sector workweek remained at 34.3 hours.
Revisions materially lowered the record of hiring in the preceding two months. The May payroll increase was revised from 129,000 to 63,000, while June was revised from 57,000 to 20,000. Together, May and June employment was 103,000 lower than first reported. BLS routinely revises recent estimates as additional employer responses arrive and seasonal factors are recalculated.
The report therefore shows a labor market with slower payroll momentum but without a sharp monthly rise in unemployment. The two headline measures come from separate surveys and can move differently. July's negative payroll estimate, downward revisions and lower participation since January are all relevant, but none of those figures alone establishes the economy's broader direction. The next report, covering August, is scheduled for September 4.