July labor report falls short: Unemployment ticks up to 4.2%

The US labor market added 73,000 new jobs in July, falling short of economists’ predictions. The unemployment rate inched up to 4.2% compared to 4.1% in June’s report, according to the Bureau of Labor Statistics.

Healthcare added 55,000 new jobs, while leisure and hospitality gained 5,000 new roles in July.  

Government saw a loss of 10,000 roles. Federal government jobs continue to decline, with a loss of 12,000 roles, and have lost 84,000 jobs since January.

Professional and business services saw a loss of 14,000 jobs.

The weaker labor report may persuade the Federal Reserve to cut interest rates in September.

Hiring is hard, but Addison Group can help. For more than 20 years, Addison Group’s staffing, temp, and executive search solutions have focused on quality over quotas. Let’s work together to find the talent that matches your goals.

Download the July labor report

Source: July 2025 Monthly Jobs Report, Bureau of Labor Statistics