"July 2025 Labor Report: Operating with a Single Support"
The US jobs market, as revealed in the latest report from the Bureau of Labor Statistics, shows significant underlying weakness. The growth from the prior two months was revised down by a combined 258,000 jobs, with the jobs report for July showing a net addition of only 33,000 jobs over the two-month period of May and June.
The US added only 73,000 jobs in July, a stark contrast to the seemingly steady jobs growth previously reported. The unemployment rate rose slightly to 4.2%, reflecting this slowdown in job creation.
However, one sector that continues to buck the trend is the healthcare and social assistance sub-sector. Almost half (48.8%) of all employment growth in the US over the past year has occurred in this sector. It accounts for 14.6% of total jobs in the economy and has been a major contributor to the overall job market. Over the past year, 78.6% of employees in this sector are female, and more than three-quarters (35.1%) of all employment growth has been amongst female employees in this sector.
The jobs market was previously held up by a three-legged stool of healthcare and social assistance, leisure & hospitality, and government hiring. However, now, only the healthcare and social assistance sector remains standing and steadily adding jobs. Other sectors, including professional and business services, manufacturing, and government, lost more than 10,000 jobs each.
The increasing concentration of jobs in certain sectors and an outright contraction of jobs in many others does not bode well for the market going forward. In recent months, significant job losses have occurred especially in the manufacturing industry, automotive suppliers, textile retail, and chemical sectors. Further job cuts are expected particularly in classic industrial branches like the automotive industry and manufacturing, with increasing insolvencies and financial difficulties spreading along the supply chains.
If your skills align with healthcare, education, or state and local government, it may still be possible to find opportunities in this job market. However, if your skills align more closely with manufacturing, financial activities, or trade and transportation, the job market may feel quite different. It's less clear than ever how much longer the saving graces of low unemployment and muted layoff activity can last. The jobs market, as it stands, presents a complex and challenging landscape for job seekers and employers alike.
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