July 2026 jobs report: U.S. economy loses 23,000 jobs

Article

The latest jobs report from the Bureau of Labor Statistics (BLS) shows the U.S. economy lost 23,000 jobs in July. This loss is surprising as many economists had expected to see a gain of at least 85,000 jobs. The last time the BLS reported a monthly decline in payroll employment was in February 2026.

The July jobs report also includes significant downward revisions to earlier estimates: The U.S. economy added 103,000 fewer jobs in May and June combined than previously reported.

National unemployment rate decreased to 4.1%

The national unemployment rate was 4.1% in July, down slightly from 4.2% in June.

The unemployment rate for college-degreed workers was 2.7%, remaining unchanged since May 2026. These professionals are among the most sought-after hires for many employers, especially for roles that require specialized skills and experience.

Get tips for standing out in a competitive job market in Robert Half’s Job Search Strategies Guide.

Healthcare, professional and business services, and construction among industries that helped drive job growth in July

The private education and health services industry continued to grow, adding 25,000 jobs last month, according to the BLS. Employers in the construction industry added 22,000 jobs.

Professional and business services also saw notable gains, with employers adding 18,000 jobs, including 3,400 in temporary help services.

Employers in these industries expanded payrolls in July as well:

Information: 11,000 jobs added

Transportation and warehousing: 9,700 jobs added

Manufacturing: 5,000 jobs added

Wholesale trade: 4,700 jobs added

Industries that lost jobs last month include government (-53,000), leisure and hospitality (-40,000), retail trade (-14,000 jobs), and financial activities (-14,000).

Hiring slows, but demand for specialized skills persists

While July’s job losses were both unexpected and significant, Robert Half research suggests that most U.S. employers still plan to add staff in the months ahead. Sixty-six percent look to increase permanent hiring in the second half of 2026, up from 60% in the first half of the year and 57% one year ago. More than half (56%) also expect to hire contract professionals to access specialized expertise, support priority initiatives and keep critical work moving forward.

Many professionals remain open to new opportunities as well. In a Robert Half survey, 46% of U.S. workers say they plan to look for a new job in the second half of 2026, up from 38% in the first half of the year and 27% one year ago. Better benefits and perks, career growth opportunities and flexibility are among the top reasons workers are considering a change.

At the same time, lean teams and persistent skills gaps are making it difficult for some organizations to keep priority initiatives on track. Nearly 6 in 10 hiring managers (58%) say finding skilled professionals is more difficult than it was a year ago. Sixty-three percent of employers report significant project delays due to the lack of needed expertise, while 48% have canceled projects. For professionals with in-demand skills, those challenges can continue to create opportunities—even in a slower hiring market.

Learn how Robert Half’s recruiters can help you hire talent—or find a job.

Explore Robert Half’s Demand for Skilled Talent Report

Read the report

Get a closer look at trends in the U.S. hiring market in the second half of 2026. Robert Half’s newly updated Demand for Skilled Talent report examines employers’ hiring plans and challenges, succession planning, demand for AI skills and other workforce priorities.

Stay current on labor market trends with Robert Half

Go to Labor Market Overview

Robert Half’s Labor Market Overview brings together the latest employment data and workplace research to help employers and professionals navigate a changing market. Find insights on in-demand roles and skills, hiring by experience level, and hybrid and remote work trends across professional fields.

Understand compensation trends with Robert Half’s 2026 Salary Guide

Access the Salary Guide

Our annual Salary Guide combines exclusive research and insights from employers, professionals and Robert Half recruiters who help staff tens of thousands of jobs each year. Covering compensation trends across 7 professional fields, the guide can help employers benchmark pay and professionals assess their earning potential.

June 2026 jobs report: Employers add 57,000 jobs

Labor market outlook through year-end 2026: 4 trends to prepare for

May 2026 Labor Market Update: What employers and job seekers should know