Executive summary

The July 2025 jobs report shows a labor market that remains resilient despite slower overall growth. Employers added 73,000 jobs, while the unemployment rate held steady at 4.2 percent. Healthcare and social assistance led the way with strong gains, wages continued to rise at a healthy pace, and average weekly hours edged up. Although revisions lowered earlier estimates by more than 250,000 jobs, the labor market continues to demonstrate stability and adaptability, with flexible hiring emerging as a key strategy for managing uncertainty.

Overall employment trends

The U.S. labor market remained stable in July, adding 73,000 jobs and continuing to reflect strong fundamentals across many sectors. While the pace of job creation has slowed in recent months, the labor market continues to perform well by historical standards.

The national unemployment rate held steady at 4.2%, unchanged from June. This consistency underscores a resilient labor market where demand for talent remains strong across much of the economy. Importantly, long-term unemployment (those jobless for 27 weeks or more) remained little changed, showing that workers are still finding opportunities even if transitions may be taking slightly longer.

Healthcare and social assistance led job growth during the month. Health care added 55,000 positions, exceeding its 12-month average of 42,000. Most of the gains came from ambulatory health care services, which added 34,000 jobs, and hospitals, which added 16,000. Social assistance increased by 18,000 jobs, with individual and family services contributing 21,000 of that total.

These gains underscore the continued demand for health and human services as the U.S. population ages and more households rely on care-related support. Employers in these sectors have also leaned on flexible labor pools to meet rising demand, particularly for roles that require extended or weekend hours.

Stable performance across major industries

Employment remained strong across a broad range of other industries. Manufacturing, construction, wholesale and retail trade, transportation and warehousing, information, financial activities, professional and business services, leisure and hospitality, and other services all held steady in July. While these sectors did not show large gains, their continued stability signals sustained demand and a healthy employment base across the economy.

Federal government employment declined by 12,000 in July. Since peaking in January, the federal workforce has decreased by 84,000 jobs, reflecting ongoing budget constraints and hiring freezes in some agencies.

Wage and hours growth

Wages continued to grow. Average hourly earnings for private-sector employees rose by 12 cents to $36.44, a 0.3% monthly increase and a 3.9% increase over the past year. Production and nonsupervisory employees saw similar growth, with wages rising by 8 cents to $31.34.

The average workweek edged up to 34.3 hours for all private employees and to 33.7 hours for production and nonsupervisory workers. In the manufacturing sector, the workweek remained steady at 40.1 hours, while overtime decreased slightly to 2.8 hours. The combination of rising wages and steady hours signals ongoing confidence from employers, even in a cautious environment.

Revisions to previous data

The report also included significant revisions to earlier data, partly due to low response rates in the job survey. May’s job growth was revised down from 144,000 to 19,000, and June’s from 147,000 to 14,000. Together, these adjustments show that 258,000 fewer jobs were added than initially reported. Even with these downward revisions, overall employment remains strong and stable. Analysts note that revisions have been more volatile in recent months, a reminder to treat initial estimates as directional rather than definitive.

Looking ahead: flexibility in an uncertain environment

Looking ahead, economic uncertainty remains, particularly regarding tariffs and trade policy. As long as these conditions remain unresolved, companies are likely to continue approaching long-term hiring cautiously.

In this environment, flexible staffing offers a practical solution. By leveraging flex hiring options, businesses can respond to demand in real time, adjust workforce levels as needed, and avoid overcommitting to permanent roles. For workers, flexibility also provides an avenue to secure steady income while balancing other commitments, such as caregiving, education, or skill development. This dual benefit is positioning flex work as a stabilizing force in a shifting economy.

Bottom line

The July 2025 Employment Situation report from the U.S. Bureau of Labor Statistics shows a labor market that is holding firm. With low unemployment, consistent job levels across key sectors, rising wages, and increased hours worked, the labor market remains a bright spot in the broader economic picture. Despite downward revisions, the fundamentals of resilience, adaptability, and flexible hiring remain intact, offering both businesses and workers room to navigate an uncertain year ahead.