Overview

• Employers added just 73,000 nonfarm payrolls in July, less than half of the 176,000 jobs analysts had projected
• The unemployment rate climbed to 4.2% from 4.1% in June as more workers left the labor force
• June’s job gains were revised down by 14,000 positions, underscoring a weakening hiring trend
• The Federal Reserve held its benchmark rate at 4.25%–4.50% two days before the employment report, maintaining policy patience
• Tariffs and tighter immigration measures have reduced workforce inflows, increasing the need for roughly 100,000 jobs per month to keep pace with working-age population growth