US nonfarm payroll employment drops by 23,000 in July as unemployment holds at 4.1%: Labour Statistics

Washington, DC: Total nonfarm payroll employment in the United States declined by 23,000 in July while the overall unemployment rate showed little change at 4.1 per cent, according to figures released by the US Bureau of Labour Statistics.The latest figures indicated a shift following a period of modest growth in the national job market in July."Total nonfarm payroll employment changed little in July (-23,000), following an average monthly gain of 34,000 over the prior 12 months," the US Bureau of Labour Statistics stated in its report. Employment declines were concentrated in specific sectors during the month. Local government education experienced a drop of 50,000 jobs after showing minimal net change over the previous year.Retail trade recorded a reduction of 19,000 positions, driven by losses in warehouse clubs, super centres, and general merchandise retailers, which cut 21,000 positions, alongside gasoline stations and fuel dealers losing 5,000 jobs.Financial activities also maintained a downward trend, shedding 14,000 jobs due to reductions in credit intermediation and insurance carriers."Financial activities employment is down by 121,000 since a recent peak in May 2025," the report noted.Conversely, health care maintained job creation, adding 22,000 positions, though at a slower rate than its 12-month average gain of 36,000. Ambulatory health care services contributed 18,000 of those additions.The total number of unemployed individuals stood at 6.9 million, remaining essentially unchanged both over the month and over the year. Among demographic groups, unemployment rates decreased for teenagers to 12.1 per cent and Hispanic workers to 4.6 per cent, while rates for adult men, adult women, White, Black, and Asian workers remained largely steady."Among the unemployed, the number of people on temporary layoff increased by 153,000 to 921,000 in July," the US Bureau of Labour Statistics stated.The long-term unemployed, representing individuals out of work for 27 weeks or more, numbered 1.8 million and accounted for 25.5 per cent of all unemployed persons.The labour force participation rate remained stable at 61.4 per cent, while the employment-population ratio was recorded at 58.9 per cent. Both metrics decreased slightly since January.Average hourly earnings for private nonfarm employees edged up by two cents to USD 37.62, representing a 3.2 per cent increase over the year. Average weekly hours for private-sector employees remained unchanged at 34.3 hours.Significant downward revisions were also reported for previous months."The change in total nonfarm payroll employment for May was revised down by 66,000, from (+129,000) to (+63,000), and the change for June was revised down by 37,000, from (+57,000) to (+20,000)," the Bureau stated.Combined employment figures for May and June are 103,000 lower than previously estimated.