Key takeaways:
- Job growth slowed dramatically: BLS reported only 73,000 jobs added in July, while massive downward revisions of 258,000 jobs for May-June combined revealed the labor market was much weaker than initially thought.
- Contrasting private sector signals: ADP showed a strong rebound with 104,000 private jobs added, driven by leisure/hospitality and financial services, while BLS data showed continued federal government job losses and weakness in professional services.
- Mixed labor market indicators: Unemployment ticked up to 4.2%, long-term unemployment rose significantly, and more people entered the job market, but wage growth remained steady at 3.9% annually.
Nonfarm payroll added 73,000 jobs in July, according to the latest report from the Bureau of Labor Statistics (BLS). This represents a significant slowdown from June’s revised figure of 14,000 (down from the previously reported 147,000) and May’s revised figure of 19,000 (down from 144,000). The downward revisions mean employment in May and June combined is 258,000 lower than previously reported, a significant revision.
Most of the employment growth for July was in health care (+55,000) and social assistance (+18,000). Health care added jobs above its 12-month average, with gains in ambulatory health care services (+34,000) and hospitals (+16,000). However, federal government continued to lose jobs (-12,000), now down 84,000 since reaching a peak in January.