According to the U.S. Bureau of Labor Statistics, total nonfarm payroll employment declined by 23,000 in July 2026, while the unemployment rate was little changed at 4.1%. Employment continued to trend upward in health care, while notable job losses occurred in local government education and retail trade. These figures are derived from the two monthly BLS surveys: the household survey, which assesses labour force status and unemployment by demographic characteristics, and the establishment survey, which measures nonfarm employment, hours, and earnings across industries.

The BLS also reported substantial downward revisions to prior months’ payroll estimates. May employment was revised down by 66,000, from +129,000 to +63,000, while June was revised down by 37,000, from +57,000 to +20,000. Combined, payroll employment for May and June was revised 103,000 lower than previously reported, reflecting additional reports received from businesses and government agencies and the recalculation of seasonal factors.

Household Survey Data

In July, the unemployment rate remained at 4.1%, with approximately 6.9 million individuals unemployed, showing little change from the previous month and over the year. Among major demographic groups, unemployment rates declined for teenagers, falling to 12.1%, and for Hispanics, declining to 4.6%. Jobless rates for adult men (3.9%), adult women (3.7%), Whites (3.6%), Blacks (6.3%), and Asians (4.0%) were little changed over the month.

The number of individuals on temporary layoff increased by 153,000 to 921,000, while the number of permanent job losers remained largely unchanged at 1.7 million. Meanwhile, the number of people unemployed for 27 weeks or more edged down to 1.8 million. Long-term unemployed individuals represented 25.5% of all unemployed persons in July, indicating that a significant share of unemployment continues to be concentrated among workers facing extended periods without employment.

Broader labour force engagement remained subdued. The labour force participation rate was unchanged at 61.4%, while the employment-population ratio held at 58.9%. Both measures, however, have trended lower since the start of the year, with participation declining by 0.7 percentage point and the employment-population ratio falling by 0.5 percentage point since January. The number of people employed part time for economic reasons remained largely unchanged at 4.8 million, while the number of discouraged workers was essentially unchanged at 476,000.

Establishment Survey Data

Total nonfarm payroll employment declined by 23,000 in July, compared with an average monthly gain of 34,000 over the preceding twelve months. Local government education recorded the largest decline, shedding 50,000 jobs after little net change over the prior year. Retail trade employment fell by 19,000, driven primarily by losses in warehouse clubs, supercenters, and other general merchandise retailers (-21,000), along with gasoline stations and fuel dealers (-5,000), partially offset by gains at sporting goods, hobby, musical instrument, book, and miscellaneous retailers (+10,000).

Employment in financial activities continued to trend downward, declining by 14,000 jobs during the month. Losses were concentrated in credit intermediation and related activities (-9,000) and insurance carriers and related activities (-7,000). Since peaking in May 2025, employment in financial activities has declined by 121,000 jobs.

Health care remained one of the few sectors posting meaningful gains, adding 22,000 jobs in July. However, growth was slower than the sector’s average monthly increase of 36,000 over the prior year. Ambulatory health care services accounted for most of the month’s growth, adding 18,000 jobs. Employment showed little change in other major industries, including mining, construction, manufacturing, wholesale trade, transportation and warehousing, information, professional and business services, social assistance, leisure and hospitality, and other services.

Wage growth remained modest. Average hourly earnings for all private nonfarm employees rose by 2 cents to $37.62 in July and were 3.2% higher than a year earlier. Production and nonsupervisory employees experienced a 4-cent increase, bringing average hourly earnings to $32.40. The average workweek remained unchanged at 34.3 hours, while manufacturing hours were steady at 40.4 hours. Manufacturing overtime edged down by 0.1 hour to 3.1 hours, and the average workweek for production and nonsupervisory employees remained at 33.8 hours.

Source: U.S. Bureau of Labor Statistics : U.S. Bureau of Labor Statistics

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