July 2026_________________________
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The BLS Establishment Job Report with data released July 2, 2026.
Commentary From This Month’s Establishment Jobs Press Report
A MONTH THAT MEETS EXPECTATIONS
The Bureau of Labor Statistics (BLS) published its July report for jobs in June. The Household Survey for June shows the adult civilian population increased by 112 thousand. However, the labor force declined 720 thousand, as did the employed, down 507 thousand, and also the unemployed, down 213 thousand. Those not in the labor force went up 832 thousand, a total much larger than usual; the number of adults not in the labor force totals 105.8 million, an amount 5 million more than June two years ago. The decrease in the unemployed was large enough to more than offset the decrease in the employed causing a decrease in the unemployment rate by .1 percent to 4.2 percent. The labor force participation rate declined .3 percent to 61.5 percent, a very low level.
The seasonally adjusted total of establishment
employment was up 57 thousand for June. The increase was 39 thousand more jobs
in the private service sector combined with an increase of 10 thousand jobs
from goods production. The total of 49 thousand new jobs in the private sector
combined with a(n) increase of 8 thousand government service jobs accounts for
the total change.
Goods production had a modest net gain of 10 thousand
new jobs after last month’s bigger increase. Natural resources decreased 4
thousand jobs; construction added 11 thousand new jobs. Non-residential construction
of buildings and non-residential specialty trade contractors had 17.3 thousand of
the jobs offset by job losses of 8.6 thousand in residential building
construction and residential specialty trade contractors. Heavy and civil engineering
construction had a small increase of 2.6 thousand jobs. Manufacturing had a net
increase of 3 thousand jobs with 6 thousand more durable goods jobs but with a
loss of 3 thousand jobs in non-durable goods production. Among durable goods fabricated
metal products had 3.4 thousand new jobs but transportation equipment including
automobile manufacturing was down 3.9 thousand jobs. Non-durable goods production did poorly. Food
processing lost 2.5 thousand jobs and plastics and rubber products dropped 3.2
thousand jobs, both similar to last month.
Government service employment increased 8 thousand
jobs, much less than last month. The federal government added 2 thousand jobs,
mostly at the post office. State government jobs were up 4 thousand; local
government had 2 thousand new jobs. State and local government jobs excluding
education had 2.8 thousand of the new jobs. State public education was up 4.3
thousand jobs while local government education declined by 1.1 thousand new jobs.
Private sector education added 22.2 thousand jobs, an unusually large increase
even for seasonally adjusted data. The total for education comes to 25.4
thousand more education jobs.
Health care took first place among service sectors
with 46.6 thousand new jobs, the same as last month. All four of the health
care subsectors added some jobs with ambulatory care adding 8.0 thousand jobs;
hospitals were up 9.2 thousand jobs; nursing and residential care added 4.3
thousand jobs. Social assistance services added 25.1 thousand jobs including 16.6
thousand new jobs coming in individual and family services. The growth rate for
health care was down from last month to 2.34 percent, but still above the
average of 2.28 percent per month of the last 15 years.
Professional and business services were up a net of 36
thousand jobs, the first significant increase in months. The professional and
technical service sub sector was up a net 18.2 thousand jobs; management of
companies went down 1.2 thousand jobs. The third sub sector, administrative and
support services including waste management, added 19.0 thousand jobs, better
than last month.
Among professional and technical services, legal
services had an unusually large increase of 5.1 thousand jobs. Computer systems
and design services had 4.3 thousand new jobs and management scientific and
technical consulting added 7.3 thousand jobs. Among administrative support
services, employment services added 14.1 thousand jobs; services to buildings
added 2.6 thousand jobs among small job declines in other support services.
Trade, transportation and utilities lost a net 4
thousand jobs with wholesale up 2.4 thousand jobs but retail trade down 7.5
thousand jobs. Transportation had a small job gain of 2.3 thousand jobs with modal
transportation lost 4.4 thousand jobs. The couriers and messengers sub sector posted
1.6 thousand new jobs; warehousing and storage added 5.1 thousand jobs.
Leisure and hospitality declined 61 thousand jobs,
after last month’s increase. The arts, entertainment and recreation sub sector lost
6.5 thousand new jobs with performing arts and spectator sports down 9.0
thousand jobs. Restaurants lost 32.9 thousand jobs, more than last month’s job
gains. Accommodations lost 21.7 thousand jobs, an unusually large job loss for
a month.
Information services declined 9 thousand jobs with motion
picture and sound recording down 3.6 thousand jobs. Computing, data processing
and web hosting was also down 3.3 thousand jobs but no sub sector did well for information
services.
Finance and real estate had no change in jobs following several months of job
losses. Finance and insurance added 1.3 thousand of the jobs where insurance
carriers lost 1.9 thousand jobs but securities and investments added 2.1 thousand
jobs among other small gains and losses. Real estate lost 1.9 thousand jobs; rental
and leasing services added 200 jobs. The other services category had 8 thousand
more jobs, up from last month. Personal and laundry services had 9.2 thousand of
the jobs offset with 3 thousand job lost in repair and maintenance services. Non-profit
associations added 2.4 thousand jobs.
The economy added 54 thousand jobs for June. Establishment employment in June was reported as 158.984 million with an annual growth rate of .43 percent. Again health care had about half the jobs it should have. Professional and business services did a little better. This month’s job total is 506 thousand above June a year ago and 1.289 million jobs above June two years ago. The 503 thousand number is about the same as last month but less than half the jobs needed to keep the country fully employed.
June Details
Jobs
Total
Non-Farm Establishment Jobs up
57,000 to 158,984,000
Total
Private Jobs up
49,000 to 135,613,000
Total Government Employment up 8,000 to 23,371,000 Note
Civilian
Non-Institutional Population up 112 thousand to 275,166,000
Civilian
Labor Force down
720 thousand to 169,358,000
Employed down 507 thousand to 162,264,000
Employed
Men down
318 thousand to 84,854,000
Employed
Women
down 189 thousand to 77,410,000
Unemployed down 213 thousand to 7,094,000
Not in the Labor Force up 832 thousand to 105,808,000
Unemployment
Rate
increased .1 percent to 4.3% 7,094/169,358
Labor Force Participation Rate decreased .3 percent to 61.5%, or 169,358/275,166
Summaries by Industry
Non Farm Total +57
The Bureau of Labor Statistics (BLS) reported Non-Farm employment for establishments increased from May by 57 thousand jobs for a(n) June total of 158.984 million. (Note 1 below) An increase of 57 thousand each month for the next 12 months represents an annual growth rate of +.43% The annual growth rate from a year ago beginning June 2025 was +.32%; the average annual growth rate from 5 years ago beginning June 2021 was +1.76%; from 15 years ago beginning June 2011 it was +1.25%. The higher five year growth rate derives from the low Pandemic employment. America needs growth around 1.5 percent a year to keep itself employed.
Sector breakdown for 12 Sectors in 000’s of jobs
1. Natural Resources -4
Natural Resources jobs including logging and mining decreased 4 thousand from May with 607 thousand jobs in June. A decrease of 4 thousand jobs each month for the next 12 months would be an annual growth rate of -7.86 percent. Natural resource jobs were down 9 thousand from a year ago. Jobs in 2000 averaged around 603 thousand with little prospect for growth. This is the smallest of 12 major sectors of the economy with .4 percent of establishment jobs.
2. Construction +11
Construction jobs were up 11 thousand from May with 8.331 million jobs in June. An increase of 11 thousand jobs each month for the next 12 months would be an annual growth rate of +1.59 percent. Construction jobs are up 64 thousand for the 12 months just ended. The growth rate for the last 15 years is 2.77%. Construction jobs rank 9th among the 12 sectors with 5.3 percent of non-farm employment.
3. Manufacturing +3
Manufacturing jobs were up 3 thousand from May with 12.598 million jobs in June. An increase of 3 thousand jobs each month for the next 12 months would be an annual growth rate of +.29 percent. Manufacturing jobs were down for the last 12 months by 38 thousand. The growth rate for the last 15 years is +.38%. Manufacturing ranks 6th among 12 major sectors in the economy with 7.9 percent of establishment jobs.
4. Trade, Transportation &
Utility -4
Trade, both wholesale and retail, transportation and utility employment were down 4 thousand jobs from May with 28.728 million jobs in June. A decrease of 4 thousand jobs each month for the next 12 months would be an annual growth rate of -.05 percent. Jobs are down by 13 thousand for last 12 months. Growth rates for the last 15 years are +.94 percent. Jobs in these sectors rank first as the biggest sectors with combined employment of 18.1 percent of total establishment employment.
5. Information Services -9
Information Services employment was down by 9 thousand jobs from May with 2.774 million jobs in June. (Note 2 below) A decrease of 9 thousand jobs each month for the next 12 months would be an annual growth rate of –3.88 percent. Jobs are down by 89 thousand for the last 12 months. Information jobs reached 3.7 million at the end of 2000, but started dropping, reaching 3 million by 2004 but has stayed close to 3.0 million in the last decade. Information Services is a small sector ranking 11th of 12 with 1.8 percent of establishment jobs.
6. Financial Activities +0
Financial Activities jobs had no change in jobs from May to 9.104 million in June. Jobs are down by 100 thousand for the last 12 months. (Note 3 below) This sector also includes real estate as well as real estate lending. The 15 year growth rate is +1.13 percent. Financial activities rank 8th of 12 with 5.8 percent of establishment jobs.
7. Business and Professional
Services +36
Business and Professional Service jobs went up 36 thousand from May to 22.507 million in June. An increase of 36 thousand each month for the next 12 months would be an annual growth rate of +1.92 percent. Jobs are down 56 thousand for the last 12 months. Note 4 The annual growth rate for the last 15 years was +1.77 percent. It ranks as 2nd among the 12 sectors now. It was 2nd in 1993, when manufacturing was bigger and third rank now with 14.1 percent of establishment employment.
8. Education including public and
private +25
Education jobs were up 25 thousand jobs from May at 14.898 million in June. An increase of 25 thousand jobs each month for the next 12 months would be an annual growth rate of +2.05 percent. These include public and private education. Jobs are down 7 thousand for the last 12 months. (note 5) The 15 year growth rate equals +.63 percent. Education ranks 5th among 12 sectors with 9.4 percent of establishment jobs.
9. Health Care +47
Health care jobs were up 47 thousand from May to 23.906 million in June. An increase of 47 thousand each month for the next 12 months would be an annual growth rate of +2.34 percent. Jobs are up 629 thousand for the last 12 months. (note 6) The health care long term 15-year growth rate has been +2.28 percent lately compared to +2.34 percent for this month’s jobs. Health care ranks 2nd of 12 with 15.0 percent of establishment jobs.
10. Leisure and hospitality -61
Leisure and hospitality jobs were down 61 thousand from May to 16.951 million in June. (note 7) A decrease of 61 thousand each month for the next 12 months would be an annual growth rate of -4.30 percent. Jobs are down 60 thousand for the last 12 months. More than 80 percent of leisure and hospitality are accommodations and restaurants assuring that most of the new jobs are in restaurants. Leisure and hospitality ranks 4th of 12 with 10.7 percent of establishment jobs. It moved up to 7th from 4th in the pandemic decline.
11. Other +8
Other Service jobs, which include repair, maintenance, personal services and non-profit organizations were up 8 thousand from May to 6.040 million in June. An increase of 8 thousand each month for the next 12 months would be an annual growth rate of +1.59 percent. Jobs are up 36 thousand for the last 12 months. (Note 8) Other services had +.81 percent growth for the last 15 years. These sectors rank 10th of 12 with 3.8 percent of total non-farm establishment jobs.
12. Government, excluding education +8
Government service employment went up 8 thousand from May at 12.539 million jobs in June. An increase of 8 thousand each month for the next 12 months would be an annual growth rate of +.46 percent. Jobs are down 189 thousand for the last 12 months. (note 9) Government jobs excluding education tend to increase slowly with a 15 year growth rate of +.39 percent. Government, excluding education, ranks 7th of 12 with 7.9 percent of total non-farm establishment jobs.
Prices and inflation measured by the Consumer Price Index (CPI) for all Urban Consumers was up by a monthly average of 2.9 percent for 2025.
The CPI July report for the 12 months ending with June shows the
CPI for All Items was up 3.5%
CPI for Food and Beverages was up 3.0%
CPI for Housing was up 3.3%
CPI for Apparel was up 3.9%
CPI for Transportation including
gasoline was up 6.5%
CPI for Medical Care was up 2.0%
CPI for Recreation was up 2.8%
CPI for Education was up 2.5%
CPI for Communication was down 2.1%
Sector Notes__________________________
(1) The total cited above is non-farm establishment employment that counts jobs and not people. If one person has two jobs then two jobs are counted. It excludes agricultural employment and the self employed. Out of a total of people employed agricultural employment typically has about 1.5 percent, the self employed about 6.8 percent, the rest make up wage and salary employment. Jobs and people employed are close to the same, but not identical numbers because jobs are not the same as people employed: some hold two jobs. Remember all these totals are jobs. back
(2) Information Services is part of the new North American Industry Classification System(NAICS). It includes firms or establishments in publishing, motion picture & sound recording, broadcasting, Internet publishing and broadcasting, telecommunications, ISPs, web search portals, data processing, libraries, archives and a few others.back
(3) Financial Activities includes deposit and non-deposit credit firms, most of which are still known as banks, savings and loan and credit unions, but also real estate firms and general and commercial rental and leasing.back
(4) Business and Professional services includes the professional areas such as legal services, architecture, engineering, computing, advertising and supporting services including office services, facilities support, services to buildings, security services, employment agencies and so on.back
(5) Education includes private and public education. Therefore education job totals include public schools and colleges as well as private schools and colleges. back
(6) Health care includes ambulatory care, private hospitals, nursing and residential care, and social services including child care. back
(7) Leisure and hospitality has establishment with arts, entertainment and recreation which has performing arts, spectator sports, gambling, fitness centers and others, which are the leisure part. The hospitality part has accommodations, motels, hotels, RV parks, and full service and fast food restaurants. back
(8) Other is a smorgasbord of repair and maintenance services, especially car repair, personal services and non-profit services of organizations like foundations, social advocacy and civic groups, and business, professional, labor unions, political groups and political parties. back
(9) Government job totals include federal, state, and local government administrative work but without education jobs. back
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Notes
Jobs are not the same as employment because jobs are counted once but one person could have two jobs adding one to employment but two to jobs. Also the employment numbers include agricultural workers, the self employed, unpaid family workers, household workers and those on unpaid leave. Jobs are establishment jobs and non-other. back
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