US Labor Market Slumps with First Monthly Decline in Over a Year
The US labor market suffered its first monthly decline in over a year, shedding 23,000 nonfarm payroll jobs in July 2026. This is a significant deviation from forecasts of 80,000 to 90,000 net additions. The Bureau of Labor Statistics data also revealed downward revisions to the May and June figures, stripping 103,000 combined positions.
The decline was concentrated in government payrolls, which shed 53,000 positions, and leisure and hospitality, which contracted by 40,000. Private payrolls managed a net gain of 30,000, but this is not enough to offset the losses in other sectors.
Economists are finding few bright spots in the July payroll miss. Cory Stahle, Senior Economist at the Indeed Hiring Lab, said 'it's hard to find many bright spots in today's jobs report.'