This story about the July 2026 jobs report will be updated with further details.
The U.S. economy unexpectedly shed jobs in July amid headwinds caused by elevated inflation and uncertainty over the Iran war’s economic impact.
What are the key findings of the July 2026 jobs report?
The Bureau of Labor Statistics on Thursday reported that employers cut 23,000 jobs in June. That figure was well below the estimate of economists polled by LSEG, who estimated 80,000 jobs would be added.
The unemployment rate dipped to 4.1%, which was also below the estimate of 4.3%.
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Revisions were made to the payroll numbers for the prior two months, with May revised down by 66,000 from a gain of 129,000 to 63,000; while June’s report was revised down by 37,000 from a gain of 57,000 to 20,000.
Taken together, employment in May and June combined was 103,000 jobs lower than previously reported.
What sectors added or lost the most jobs in July 2026?
Private payrolls added 30,000 jobs in July, well below the 78,000 estimate of economists polled by LSEG. June’s growth in private payrolls was revised down from a gain of 49,000 to 30,000.
Government payrolls contracted by 53,000 jobs in July, with the sector’s increase of 8,000 jobs in June revised to a loss of 10,000 jobs.
The manufacturing sector added 5,000 jobs in July, above the estimate of economists polled by LSEG who expected a gain of 4,000 jobs. The June data for manufacturing was revised upwards from a gain of 3,000 jobs to 11,000 jobs.
Retail lost 19,000 jobs in July, with declines in supercenters and general merchandise retailers (-21,000) and gas stations (-5,000) more than outpacing gains by sporting goods, hobby, music, book and other retailers (+10,000). Retail employment has shown little change over the last 12 months.
Financial activities shed 14,000 jobs in July, due to losses i credit intermediaries (-9,000) as well as insurance carriers (-7,000). Employment in the financial sector is 121,000 jobs below its May 2025 peak.
Healthcare added 22,000 jobs in July, which represented a slowdown from the average monthly gain of 36,000 jobs over the last 12 months. Employment in ambulatory healthcare services contributed much of the monthly increase (+18,000).
What does the July 2026 jobs report mean for the workforce?
The number of long-term unemployed, defined as those who have been jobless for 27 weeks or more, ticked lower to 1.8 million but has been little changed over the year. The long-term unemployed accounted for 25.5% of all unemployed people in July.
The number of people employed part-time for economic reasons also changed little at 4.8 million in July. These individuals would’ve preferred full-time employment but were working part time because their hours were reduced, or they were unable to find full-time jobs.
The labor force participation rate was 61.4% in July, having changed little over the month. Since January, the labor force participation rate has declined by 0.7 percentage points.
Average earnings grew at 3.2% over the last year in July, below the 3.5% estimate of economists polled by LSEG, while June’s figure was revised down from 3.5% to 3.4%.
What experts are saying about the July 2026 jobs report
What does it mean for interest rate cuts?
What does the July 2026 jobs report mean for the market?
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