The U.S. economy added just 73,000 jobs in July, marking a significant slowdown in employment growth that has persisted since April, according to the Bureau of Labor Statistics report released Friday. The unemployment rate remained relatively stable at 4.2 percent, continuing a narrow range between 4.0 and 4.2 percent that has characterized the labor market since May 2024.

The July report included substantial downward revisions to previous months that paint a more concerning picture of the labor market. Employment gains for May were revised down by 125,000 jobs, from 144,000 to just 19,000, while June’s figures were slashed by 133,000 jobs, dropping from 147,000 to only 14,000. Combined, these revisions show 258,000 fewer jobs were created in May and June than initially reported.

The Bureau of Labor Statistics noted that these revisions were “larger than normal,” suggesting potential underlying weakness in job creation that wasn’t initially captured in the data.

Despite the overall sluggish performance, healthcare emerged as a bright spot, adding 55,000 jobs in July, above its 12-month average of 42,000 monthly gains. Within healthcare, ambulatory care services led with 34,000 new positions, while hospitals contributed 16,000 jobs.

Social assistance also showed continued strength, adding 18,000 jobs driven primarily by growth in individual and family services, which gained 21,000 positions.

Federal employment continued its decline, losing 12,000 jobs in July, bringing total federal job losses to 84,000 since reaching a peak in January 2025. This ongoing reduction in federal employment represents a notable drag on overall job growth.

Most other major industries showed little change, including construction, manufacturing, retail trade, transportation, financial activities, and leisure and hospitality.

The labor force participation rate held steady at 62.2 percent in July but has declined by 0.5 percentage points over the past year. Similarly, the employment-population ratio remained at 59.6 percent for the month but dropped 0.4 percentage points compared to July 2024.

Long-term unemployment continued to rise, with 1.8 million people jobless for 27 weeks or more—an increase of 179,000 from June. These long-term unemployed now represent 24.9 percent of all unemployed Americans.

Average hourly earnings increased by 12 cents to $36.44 in July, representing a 0.3 percent monthly gain. Over the past 12 months, wages have grown 3.9 percent, indicating continued but moderate wage pressure.

The average workweek for private sector employees edged up slightly to 34.3 hours, while manufacturing maintained its 40.1-hour average workweek.