The Bureau of Labor Statistics has released its July 2025 Report, so let’s take a look at how employment fared over the last month.
The great news is:
- Healthcare hiring surged: +55,000 jobs in July (above 12-month average of +42,000), led by ambulatory care (+34,000) and hospitals (+16,000).
- Social assistance grew: +18,000 jobs, with +21,000 in individual and family services.
- Wages are up: Average hourly earnings rose $0.12 (+0.3%) to $36.44; up 3.9% over the past year.
- Discouraged workers dropped: Down 212,000 in July, reversing the prior month’s increase.
The good news is:
- Unemployment rate steady: 4.2%, holding in a narrow range (4.0–4.2%) since May 2024.
- Workweek edged up: Average hours worked increased to 34.3 for all employees; 33.7 for production/nonsupervisory workers.
- Marginally attached workers stable: 1.7 million, little change from prior month.
The bad news is:
- Overall job growth slow: +73,000 in July; little change since April.
- Federal government jobs declined: -12,000 in July; down 84,000 since January.
- Long-term unemployment rose: +179,000 to 1.8 million, now 24.9% of all unemployed.
- Labor force participation slipping: 62.2% in July, down 0.5 percentage points over the year; employment-population ratio down 0.4 points.
- Large downward revisions: May jobs revised from +144,000 to +19,000; June from +147,000 to +14,000 — 258,000 fewer jobs than previously reported.
Final Takeaway
The July 2025 jobs report paints a picture of a labor market that’s holding steady in some areas but losing momentum overall. Healthcare and social assistance continue to be bright spots, and wages are still on the rise, giving workers more earning power. However, slow overall job growth, rising long-term unemployment, and downward revisions to prior months signal that the pace of hiring is cooling. Both employers and job seekers should be prepared for a more competitive environment in the months ahead.