#USNonFarmPayrollReport
US PAYROOL REPORT
Here’s the latest on the U.S. Nonfarm Payroll (NFP) Report — one of the most closely watched economic indicators in the world:
---
Current (July 2025) NFP Report — Released August 1, 2025
Nonfarm payrolls rose by 73,000 jobs in July — significantly below consensus expectations of around 100,000 or more.
Payroll numbers for May and June were revised sharply down by a combined 258,000 jobs.
Unemployment rate edged up to 4.2%.
Job gains concentrated in health care and social assistance, while government employment declined.
Average hourly earnings rose 3.9% year-over-year, with the July level at $36.44/hour.
Labor force participation held steady at 62.2%.
---
What It Means
1. Softening Labor Market
The modest job growth and downward revisions suggest a notable cooling in employment trends.
2. Rising Rate Cut Expectations
These data have fueled market bets on a U.S. Federal Reserve interest rate cut in September.
3. Volatile Market Reaction
Stock markets saw sharp declines following the report, with the Dow plunging over 500 points.
4. Structural Labor Issues
A significant drop in immigration has shrunk the foreign-born labor force, contributing to slower job growth.
---
Quick Summary
Metric July 2025 Reading
Nonfarm Payrolls Change +73,000 jobs
Revisions (May–June) -258,000 jobs cumulatively
Unemployment Rate 4.2%
Labor Force Participation 62.2%
Average Hourly Earnings $36.44/hr (+3.9% YoY)
---
Why This Matters
Fed Policy: Weak payrolls increase the probability of a forthcoming rate cut—potentially as soon as mid-September.
Market Volatility: Financial markets reacted sharply across equities, currencies, and safe-haven assets.
Structural Headwinds: Restrictions on immigration and demographic shifts are reshaping labor supply dynamics.
