U.S. Payrolls Fall by 23,000 in July as Unemployment Rate Dips to 4.1 Percent
August 7, 2026 – Employment fell by 23,000 in July as the U.S. unemployment rate stood at 4.1 percent, according to the most recent U.S. Bureau of Labor Statistics report. The number of unemployed people, at 6.9 million, changed little in July.
Among the major worker groups, the unemployment rates for teenagers (12.1 percent) and people who are Hispanic (4.6 percent) declined in July. The jobless rates for adult men (3.9 percent), adult women (3.7 percent), and people who are White (3.6 percent), Black (6.3 percent), or Asian (4.0 percent) showed little or no change over the month.
Among the unemployed, the number of people on temporary layoff increased by 153,000 to 921,000 in July. The number of permanent job losers changed little at 1.7 million. In July, the number of people jobless less than 5 weeks edged down to 2.0 million and is down by 344,000 over the year. The number of long-term unemployed (those jobless for 27 weeks or more) edged down over the month to 1.8 million but changed little over the year. The long-term unemployed accounted for 25.5 percent of all unemployed people in July.
Both the labor force participation rate, at 61.4 percent, and the employment-population ratio, at 58.9 percent, changed little in July. Since January, the labor force participation rate declined by 0.7 percentage point, and the employment-population ratio decreased by 0.5 percentage point.
The number of people employed part time for economic reasons changed little at 4.8 million in July. These individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs.
In July, the number of people not in the labor force who currently want a job changed little at 5.9 million. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job.
Among those not in the labor force who wanted a job, the number of people marginally attached to the labor force changed little at 1.8 million in July. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the four weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, was essentially unchanged in July at 476,000.
Where Job Growth Occurred
- Employment in local government education declined by 50,000 in July, after showing little net change over the prior 12 months.
- Retail trade lost 19,000 jobs in July. Employment declined in warehouse clubs, supercenters, and other general merchandise retailers (-21,000) and in gasoline stations and fuel dealers (-5,000). Sporting goods, hobby, musical instrument, book, and miscellaneous retailers added 10,000 jobs. Retail trade employment had shown little net change over the prior 12 months.
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- Employment in financial activities continued to trend down in July (-14,000), reflecting losses in credit intermediation and related activities (-9,000) and insurance carriers and related activities (-7,000). Financial activities employment is down by 121,000 since a recent peak in May 2025.
- In July, employment in healthcare continued its upward trend (+22,000) but at a slower pace than the average monthly gain over the prior 12 months (+36,000). Employment in ambulatory healthcare services continued to trend up over the month (+18,000).
- Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; transportation and warehousing; information; professional and business services; social assistance; leisure and hospitality; and other services.
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Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
