July's jobs report suggests the labor market is losing some momentum, but it's far from falling off a cliff. Employers cut 23,000 jobs during the month, and revisions to May and June removed another 103,000 jobs from previously reported totals. While the unemployment rate ticked down to 4.1%, labor force participation also declined to 61.4%, indicating that the lower unemployment rate doesn't necessarily reflect stronger hiring activity.
| Metric | July 2026 | Change / Notes |
| Job openings | 7.4 million | Little changed in June; job-openings rate 4.4%. |
| Quits | 3.2 million | Unchanged in June; quits rate 2.0%. |
| New Jobs Added | -23,000 | Down from +20,000 in June (revised); 12-month average gain: +34,000. |
| Total Hires | 5.3 million | Little changed in June; hires rate 3.4%. . |
| Total Separations | 5.4 million | Little changed in June; separation rate 3.4%. |
| Layoffs and discharges | 1.8 million | Little changed in June; layoffs/discharges rate 1.1%. |
| Average hourly earnings | $37.62 | Up $0.02 in July; +3.2% year over year. |
| Labor force participation ate | 61.4% | Down 0.1 percentage point in July; down 0.7 point since January. |
For employers and talent acquisition teams, the environment remains cautious but stable. Companies are still hiring, just more selectively, and many workers are staying put rather than pursuing new opportunities. At the same time, demand for skilled professionals in healthcare, the trades, and technical fields continues to outpace supply. Wage growth remains steady, and employers across many regions still report challenges finding qualified talent, making a focused, strategic approach to hiring more important than ever.
Get the easy to read Jobs Report recap:
Sources:
- Federal Reserve Beige Book
- BLS Employment Situation
- BLS Job Openings and Labor Turnover
- Associated Press
- CNN
Past Reports
