In July, the unemployment rate in the United States ticked down by one-tenth of a percentage point, settling at 3.5 percent. The Bureau of Labor Statistics reported that the number of unemployed people declined to 5.7 million, signaling ongoing strength in the labor market.
During the month, approximately 528,000 jobs were added. This figure aligns with indicators that the US labor market has returned to pre-pandemic conditions in several key areas.
Job gains were broad-based, with notable advancements in entertainment and hospitality, as well as professional and business services and the health sector.
July’s data exceeded expectations and underscored sustained labor market momentum, offering policymakers some breathing room as economic conditions evolve.
The employment gains helped counter recent weaker performance in gross domestic product, which contracted by about 0.2 percent in the second quarter and prompted concerns about a potential technical recession. Leadership within the administration has continued to emphasize the labor market’s resilience as a key stabilizing factor.
Overall, the 528,000 jobs added in July outpaced the four-month monthly average of 388,000, contributing to a rise of roughly 22.0 million jobs since the trough reached in April 2020.
In the private sector, job creation reached 629,000 relative to February 2020, though some industries have yet to fully recover. Public sector employment declined by about 597,000 positions in the pandemic period, highlighting the uneven pace of recovery across sectors.