August 2025 Jobs Report Recap
Posted by Darren Findley on Tue, Aug 05, 2025 @ 02:00 PM

Transforming_Recruitment_blog

July Labor Market Shows Signs of Slowing Momentum

The July Employment Situation Report shows the labor market is feeling pressure from both long-term challenges and short-term changes. Job creation remained sluggish, with only 73,000 jobs added, significantly lower than June’s revised total and well below the 115,000 expected by economists. At the same time, the unemployment rate ticked up to 4.2%, reflecting ongoing challenges with labor force participation and persistent economic uncertainty.

More concerning were the substantial downward revisions to May and June job totals, which removed a combined 258,000 jobs from earlier estimates. These “larger-than-normal” revisions underscore the fragile state of the current recovery. Amid policy headwinds, including tariffs, reduced federal spending and rising automation, the market appears increasingly reliant on a narrow slice of the economy for job growth.

The Numbers*:

The U.S. economy added 73,000 jobs in July, well below the 115,000 expected by economists.

The unemployment rate remained slightly increased to 4.2%.

There were 7.4 million** open jobs.

The labor force participation rate decreased to 62.2%.

The number of job quits in the U.S. decreased to 3.1 million**.

  • Average hourly earnings rose by 0.3% month-over-month to $36.44.
  • Average weekly hours worked remained unchanged at 34.3 hours​.
  • Total hires were 5.2 million**, while total separations were 5.1 million**.
  • Within separations, layoffs/discharges accounted for 1.6 million**.

Industry Trends:

Industry July Jobs Notes
Healthcare + 55,000 Particularly in ambulatory services (+34,000) and hospitals (+16,000)
Social Assistance + 18,000 Primarily In family and individual services
Retail + 15,700 But volatility remains 
Financial Activities + 15,000  
Federal Government - 12,000  Contributing to a total loss of 84,000 since January 
Manufacturing - 11,000 Including a decline of 2.4K in motor vehicles and parts
Temporary Help Services - 4,400 Continuing downward trend


Revisions for May and June were larger than normal, with May being revised down from +144,000 to +19,000 and June revised down from +147,000 to +14,000.

Get latest Jobs Report:

* Above represents July 2025 Data

** The figures above for openings, hires and separations reflect the June Job Openings and Labor Turnover Survey (JOLTS) 2025 report.

Sources:

Past Reports

Topics: Labor Market Trends

Latest Posts