US economy added 73,000 jobs in July, far below expectations

In July 2025, U.S. nonfarm payrolls grew by just 73,000, falling short of the 110,000 jobs expected. Large revisions slashed prior estimates: May’s job gains dropped 125,000 to 19,000, and June’s fell 133,000 to 14,000, revealing a 258,000-job overstatement.

The unemployment rate held at 4.2%, with 7.2 million unemployed. Health care added 55,000 jobs, and social assistance gained 18,000, but federal government shed 12,000 positions, down 84,000 since January. Long-term unemployment rose by 179,000 to 1.8 million, comprising 24.9% of the jobless.

Labor force participation dipped to 62.2%, down 0.5% yearly. Average hourly earnings rose 12 cents to $36.44, up 3.9% annually. The workweek edged up to 34.3 hours.

“Discouraged workers decreased by 212,000 in July to 425,000,” BLS reported, offsetting prior increases. New jobless entrants surged by 275,000 to 985,000. Weak private-sector gains and concentrated growth in non-cyclical sectors signal economic slowdown. Policy uncertainties, including tariffs and spending cuts, loom over the labor market’s stability.