WASHINGTON—U.S. employers shed 23,000 jobs in July while the unemployment rate was little changed at 4.1%, the Bureau of Labor Statistics reported, offering further evidence of a weak labor market. The decline followed average monthly payroll gains of just 34,000 over the prior 12 months.
Curt Long
The July losses were led by local government education, which shed 50,000 jobs, and retail trade, down 19,000. Financial activities lost 14,000 jobs, including 9,000 in credit intermediation and related activities, while health care added 22,000. Financial activities employment is now down 121,000 from its May 2025 peak.
BLS also sharply lowered its estimates for the previous two months, revising May's gain to 63,000 from 129,000 and June's increase to 20,000 from 57,000—a combined reduction of 103,000 jobs. Average hourly earnings were nearly unchanged in July at $37.62 but were up 3.2% from a year earlier, while the labor force participation rate held at 61.4%.
"The July jobs report disappointed as job creation slipped below zero for the first time since February," said America's Credit Unions Chief Economist Curt Long. "The July data may have suffered from the impact of the end of the World Cup, increased immigration enforcement, and quirky seasonal factors, but the weakness extended beyond job growth to labor force participation and hourly earnings. A September rate hike from the Federal Reserve is still in play but would likely require a very hot inflation print later this month. Against this backdrop of rising prices and a tepid labor market, credit unions will continue to provide needed financial relief for Main Street households."