US nonfarm payrolls fell by 23,000 in July, the first monthly decline in months, while the government also cut May and June's job counts. Hiring has slowed to a crawl even though layoffs remain historically rare, leaving the labor market stuck between weakness and stability.
US employers cut payrolls by 23,000 jobs in July, the first outright monthly decline recorded in months. The economy has averaged roughly 60,000 new jobs per month so far this year, a fraction of the pace seen during the 2023 and 2024 recovery.
Revisions deepen the slowdown
The Bureau of Labor Statistics also cut its earlier estimates, revising May's job gains down by 66,000 and June's by 37,000. On August 28, the BLS released a preliminary benchmark revision that trimmed employment figures through March 2026 by 79,000 jobs total, equal to roughly 23,000 fewer jobs per month on a seasonally adjusted basis. The hiring rate has settled at around 3.3%. Yet layoffs stay rare, with weekly jobless claims holding in a narrow band of 203,000 to 207,000.
Healthcare gains, other sectors lag
Healthcare has kept adding jobs even as other industries struggle, with monthly gains ranging between 22,600 and 55,000 positions in recent reports. Leisure and hospitality, retail, and government, however, have all shown weakness. The unemployment rate held at 4.1% in July, and the labor force itself is shrinking as retirements and tighter immigration policy reduce the flow of new workers.
The next data point
The August jobs report is due next, with forecasts pointing to an addition of roughly 65,000 positions.
Source: Crypto Briefing
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