Retail trade and local government education lead job losses, while health care continues to add jobs despite a slowing hiring pace.
The US labour market remained broadly stable in July even as employers trimmed payrolls, with the unemployment rate holding at 4.1 per cent while nonfarm payroll employment declined by 23,000 jobs, according to the latest Employment Situation report released by the US Bureau of Labor Statistics (BLS).
The report showed that the number of unemployed Americans stood at 6.9 million, largely unchanged from the previous month. The labour market continued to display resilience despite weakness in some sectors, particularly retail trade and local government education.
Total nonfarm payroll employment fell by 23,000 in July after averaging monthly gains of 34,000 over the previous 12 months. Job losses were concentrated in local government education, which shed 50,000 positions, and retail trade, where employment declined by 19,000. Meanwhile, health care remained a bright spot, adding 22,000 jobs, although the pace was slower than its average monthly gain of 36,000 over the past year.
Within retail, warehouse clubs, supercentres and general merchandise retailers posted the biggest declines, while sporting goods, hobby and book retailers recorded modest gains. Financial activities also continued to weaken, losing 14,000 jobs during the month and extending a longer-term downward trend.
The report noted that the labour force participation rate remained at 61.4 per cent, while the employment-population ratio held at 58.9 per cent. Since January, both measures have edged lower, indicating some softening in workforce participation.
More from BusinessAmong demographic groups, unemployment declined for teenagers, whose jobless rate fell to 12.1 per cent, and for Hispanic workers, whose unemployment rate eased to 4.6 per cent. Rates for adult men, adult women, White, Black and Asian workers were little changed during the month.
Average hourly earnings for all private-sector employees were largely unchanged at $37.62, while annual wage growth stood at 3.2 per cent. The average workweek remained steady at 34.3 hours, suggesting stable labour demand despite the modest payroll decline.
The BLS also revised previous employment estimates downward. Payroll gains for May were lowered by 66,000 to 63,000, while June payroll additions were revised down by 37,000 to 20,000. Together, the revisions reduced previously reported employment growth by 103,000 jobs.
