Nonfarm payroll gains were sharply revised down: May's total dropped from 144,000 to 19,000, and June's from 147,000 to 14,000

Employment growth in the United States has been considerably weaker than earlier estimates suggested, pointing to a possible slowdown in the labor market.

According to the latest non-farm payroll report, U.S. employment increased by just 73,000 in July—falling short of economists’ expectations of 110,000 new jobs.

More significantly, revisions to prior months’ figures show sharp downward adjustments. The Bureau of Labor Statistics now estimates that only 19,000 jobs were added in May, a downward revision of 125,000 from the initial 144,000. June’s job gains were also revised down to 14,000, far below the 147,000 previously reported.

Together, these revisions indicate that 258,000 fewer jobs were created in May and June than previously thought.

The U.S. unemployment rate has edged up to 4.2% from 4.1% in June.

The unexpectedly weak data may reflect broader pressures on the economy, including the lingering effects of the Trump administration’s trade conflicts and related policy uncertainty. Some analysts also point to potential consequences from the DOGE cost-cutting program launched by Elon Musk.