July U.S. job growth stalls, unemployment climbs
US labor market sees sharp revisions, July 2025 job gains fall short
July 2025 hiring totals hit 73,000, below expectations
The Department of Labor reported that the economy added 73,000 jobs in July 2025, a figure that disappointed analysts who had projected stronger growth.
May and June employment figures revised downward
- May hiring revised from 144,000 to 19,000
- June hiring revised from 147,000 to 14,000
These adjustments bring the months’ job creation to the weakest levels seen since the Covid‑19 pandemic.
Uncertainty over Trump’s trade tariffs drives a wait‑and‑see stance
Companies are grappling with escalating tariffs on imports and on specific sectors such as steel, aluminum and autos, which have raised business costs and prompted some firms to pass the burden partially to consumers.
Fed officials warn against delaying interest‑rate cuts
Fed Vice Chair for Supervision Michelle Bowman cautioned that postponing a rate cut could lead to a further weakening labor market and a slowdown in economic growth. The Fed’s decision to keep rates unchanged for a fifth meeting was opposed by two officials who highlighted the need for a “wait‑and‑see” approach.
Core wage gains and sectoral hiring trends
Average hourly earnings rose by 0.3 % to $36.44 in July. Employment continued to expand in health care and social assistance, while the federal government remained a net job cutter.
