July US Nonfarm Payrolls Show Subdued Growth Amid Retail and Education Job Cuts

The U.S. nonfarm payroll employment showed little change in July, with a decline of 23,000 jobs after average monthly gains of 34,000 over the previous 12 months.

The decline was driven by losses in local government education and retail trade, while health care continued to add jobs at a slower pace. Local government education cut 50,000 jobs in July, marking a significant decline after stable employment over the previous year.

Retail trade lost 19,000 jobs in July, led by a 21,000 drop at general merchandise retailers and a 5,000 decline at gasoline stations. However, sporting goods, hobby, musical instrument, book, and miscellaneous retailers added 10,000 jobs, tempering the broader retail sector's weakness.

The health care industry continued its upward trend in July, adding 22,000 jobs, although that is below the average monthly gain of 36,000 over the prior 12 months. Ambulatory health care services account for much of the increase, with payrolls rising by 18,000 over the month.