Economy Likely Created Only 115,000 Jobs in July

The American job market is weakening—slowly but noticeably.

The Labor Department’s July employment report is expected to show that businesses, government agencies, and nonprofits added only 115,000 jobs last month.

There’s no sign of mass layoffs, and the national unemployment rate remains low. But beneath the surface, signs of strain are emerging, especially for young workers. New college graduates are finding it increasingly difficult to break into the workforce, Paul Wiseman reported for the Associated Press  (AP).

The unemployment rate for college graduates aged 22 to 27 hit 5.8% in March—excluding the pandemic, the highest rate since 2012—and significantly above the national average.

Many workers are choosing to stay in their current jobs, sensing that better opportunities simply aren’t out there. And increasingly, they may be right: few industries are hiring aggressively.

This trend marks a sharp reversal from the post-pandemic hiring boom of just three years ago, when employers were offering signing bonuses and perks like Fridays off, fertility benefits, and even pet insurance to attract talent.

The Labor Department’s July employment report is expected to show that businesses, government agencies, and nonprofits added only 115,000 jobs last month, according to forecasts from data firm FactSet.

While not disastrous, the number is down from 147,000 jobs added in June—and well below last year’s pace.

So far in 2025, employers have added an average of 130,000 jobs per month, down 23% from last year and 68% below the 2021–2023 average, when the economy was still rebounding from COVID-19 lockdowns.