Sunday, October 5, 2025
More

    U.S. Job Growth Slows in July as Healthcare Gains Offset Broader Weakness

    July 2025 jobs report, BLS, U.S. unemployment, labor market, job growth, healthcare jobs, wage growth, Virginia Times

    NEED TO KNOW
    • U.S. added only 73,000 jobs in July 2025, signaling a continued slowdown.
    • Unemployment rate remained stable at 4.2%.
    • Healthcare and social assistance drove job growth; federal jobs declined.
    • Wage growth rose 0.3% in July; average hourly earnings now at $36.44.
    • May and June job numbers were revised down significantly, cutting 258,000 jobs.

    July Job Growth Remains Tepid

    The U.S. economy added just 73,000 nonfarm payroll jobs in July, continuing a three-month pattern of minimal job gains, according to the Bureau of Labor Statistics. The unemployment rate held steady at 4.2%, suggesting a cooling labor market following stronger growth earlier in the year.

    Healthcare and Social Assistance Lead the Way

    Despite the sluggish topline number, job growth continued in healthcare (+55,000) and social assistance (+18,000). Notably, ambulatory healthcare services added 34,000 jobs, while hospitals brought on 16,000 new workers. The gains in family and individual services also pushed social assistance numbers upward.

    Federal Government Job Losses Continue

    Federal employment continued to shrink, dropping 12,000 positions in July. Since peaking in January, federal job cuts now total 84,000. These declines come even as other sectors such as manufacturing, retail, construction, and transportation remained largely flat.

    Labor Force Participation Shows Little Change

    The labor force participation rate remained nearly unchanged at 62.2%, though it has dropped by 0.5 percentage points over the past year. The employment-population ratio stood at 59.6%, down 0.4 percentage points year-over-year. Meanwhile, the number of long-term unemployed—those out of work for more than 27 weeks—rose by 179,000 to 1.8 million.

    “The number of new labor force entrants rose by 275,000, with 985,000 first-time job seekers now actively searching for employment,” reported BLS.

    Wage Growth and Hours Edge Up

    Average hourly earnings increased by 12 cents to $36.44, reflecting a 3.9% rise over the past year. Private-sector production and nonsupervisory workers saw their wages increase to $31.34. The average workweek ticked up to 34.3 hours, with small gains across most sectors.

    Revisions Reveal Deeper Weakness

    In a significant update, BLS revised downward job gains for May and June by a combined 258,000. May’s numbers were cut from +144,000 to just +19,000, while June’s were lowered from +147,000 to +14,000. These revisions underscore the weaker-than-expected state of the job market in early summer.

    The Bottom Line

    With job creation slowing and participation rates stagnant, the July employment report reflects a labor market in transition. While health and social care sectors remain resilient, flat growth elsewhere and federal downsizing point to broader economic caution as policymakers monitor potential risks heading into the fall.

    Follow Virginia Times for regular news updates. Stay informed with the latest headlines, breaking stories, and in-depth reporting from around the world.

    Comments
    More From Author

    A global media for the latest news, entertainment, music fashion, and more.

    - Advertisement -
    VT Newsroom
    VT Newsroom
    A global media for the latest news, entertainment, music fashion, and more.

    Latest news

    Related news

    Weekly News