June’s employment gains significantly adjusted downward to 14,000 from 147,000.
The U.S. economy added a smaller-than-expected number of new jobs last month as the labor market continues to cool.
In July, payroll growth slowed to 73,000, new Bureau of Labor Statistics data show.
The median estimate for employment gains was 115,000, according to FactSet Insights.
The unemployment rate ticked up to 4.2 percent from 4.1 percent, in line with market expectations.
Private payrolls rebounded in July, soaring by 83,000 following a downwardly revised 3,000 boost in June.
Health care and social assistance accounted for all the employment gains, with 55,000 and 18,000 new jobs, respectively.
Federal government jobs fell by 12,000 and are down by 84,000 this year.
“Employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey,” the report stated.
Manufacturing payrolls also declined by 11,000.
Workers are still commanding higher pay. Average hourly wage growth rose by 0.3 percent monthly and edged up to a higher-than-expected 3.9 percent year over year.
The labor force participation rate dipped to 62.2 percent from 62.3 percent, and average weekly hours rose to 34.3 from 34.2.
Revisions were a major component of the July jobs numbers.
According to the Bureau of Labor Statistics, June’s reading was revised lower by 133,000 to 14,000. Payroll employment for May was also adjusted lower by 125,000 to 19,000. In total, employment was lower by 258,000 than initially reported. Since February, revisions have totaled more than 300,000.
Ernie Tedeschi, director of economics at The Yale Budget Lab and former chief economist on the White House Council of Economic Advisers, says this was the largest two-month revision since at least 1979, outside of the pandemic.
The trend of workers finding it more challenging to obtain employment persisted last month. The number of long-term unemployed surged by 179,000 to 1.8 million, accounting for nearly 25 percent of all jobless individuals.
The number of full-time workers employed fell by 440,000, while the number of part-time workers employed increased by 247,000.
Additionally, the number of people working two or more jobs dropped by 523,000 to 8.34 million.
Meanwhile, the household portion of the monthly jobs report, which removes duplication, showed employment fell by 260,000.
By Andrew Moran
