Key Takeaways
US nonfarm payrolls fell by 23,000 in July, according to Bureau of Labor Statistics data released Friday. Analysts polled by Econoday had expected a gain of 88,000.
Local government and education lost 50,000 positions, retail lost 19,000, and financial activities shed 14,000. Healthcare added 22,000.
The unemployment rate fell to 4.1 percent from 4.2 percent, but the labor force participation rate also slipped to 61.4 percent, meaning part of the improvement came from people leaving the job market.
US employers unexpectedly cut jobs in July, and by a wide margin against what forecasters expected. Nonfarm payrolls fell by 23,000 on a seasonally adjusted basis, UPI reported from the Bureau of Labor Statistics release, against an Econoday consensus of 88,000 new jobs. June was revised down to 20,000 and May to 63,000.
The losses were concentrated. Local government and education shed 50,000 positions, retail lost 19,000, and financial activities lost 14,000. Healthcare added 22,000, which has been the pattern for most of the year. Average hourly earnings rose two cents and the average workweek held at 34.3 hours.
The headline unemployment rate actually improved, dropping to 4.1 percent from 4.2 percent. That number is worth sitting with, because the labor force participation rate fell at the same time, to 61.4 percent from 61.5 percent. When people stop looking, they stop being counted as unemployed. Payroll processor ADP had already flagged the slowdown two days earlier, reporting private job growth of 44,000 in July against a downwardly revised 95,000 in June.
Where this lands hardest is the part of the economy that does not show up in a payroll survey. Great Plains Food Bank reported this week that a record 186,366 people turned to it and its partner pantries in the fiscal year ending June 30, roughly one in four residents across its North Dakota and western Minnesota service area, and a 16 percent jump year over year. Food banks in Arizona, Texas, and Oregon have reported similar records in recent weeks.
That demand is arriving at the same moment the federal backstop is getting smaller. SNAP enrollment has fallen by more than 4 million people since the program's biggest overhaul in decades began taking hold, and the costliest pieces of that overhaul do not start until October. States are separately fighting over who gets access to the personal data of families still in the safety net. A weakening labor market on top of a shrinking benefit is not a forecast. It is the arithmetic of the next few months.
People Also Ask
How many jobs did the US lose in July 2026?
Nonfarm payrolls fell by 23,000 on a seasonally adjusted basis, according to the Bureau of Labor Statistics report released August 7.
What did economists expect?
A gain of 88,000 jobs, per the Econoday consensus. The miss was more than 110,000 jobs wide.
Why did unemployment fall if jobs were lost?
The rate dropped to 4.1 percent while labor force participation slipped to 61.4 percent. People who stop looking for work are not counted as unemployed.
Which industries lost the most jobs?
Local government and education led with 50,000 losses, followed by retail at 19,000 and financial activities at 14,000. Healthcare added 22,000.