This story about the July 2026 jobs report will be updated with further details.
The U.S. economy unexpectedly shed jobs in July amid headwinds caused by elevated inflation and uncertainty over the Iran war's economic impact.
The Bureau of Labor Statistics on Thursday reported that employers cut 23,000 jobs in June. That figure was well below the estimate of economists polled by LSEG, who estimated 80,000 jobs would be added.
The unemployment rate dipped to 4.1%, which was also below the estimate of 4.3%.
Revisions were made to the payroll numbers for the prior two months, with May revised down by 66,000 from a gain of 129,000 to 63,000; while June's report was revised down by 37,000 from a gain of 57,000 to 20,000.
Taken together, employment in May and June combined was 103,000 jobs lower than previously reported.
Private payrolls added 30,000 jobs in July, well below the 78,000 estimate of economists polled by LSEG. June's growth in private payrolls was revised down from a gain of 49,000 to 30,000.
Government payrolls contracted by 53,000 jobs in July, with the sector's increase of 8,000 jobs in June revised to a loss of 10,000 jobs.
The manufacturing sector added 5,000 jobs in July, above the estimate of economists polled by LSEG who expected a gain of 4,000 jobs. The June data for manufacturing was revised upwards from a gain of 3,000 jobs to 11,000 jobs.