July 2023 Employment Situation Summary: Latest Data from the Bureau of Labor Statistics

Last time, we explained that the Bureau of Labor Statistics (BLS) supports the Department of Labor with data and statistics to aid in its mission of developing the welfare of wage earners and job seekers like you.

In addition to its Monthly Labor Review, the BLS publishes a monthly report called the Employment Situation Summary. Spoiler alert: it’s super long. Here, then, is our boiled-down recap of this important release.

July’s Employment Situation Summary Key Takeaways:

• Job growth is up, unemployment is stable
• Temporary layoffs are down, permanent job loss is steady
• Jobs were added in health care and other sectors while others stayed at the same level
• Average hourly earnings rose, the average workweek got a little shorter, past employment gains were revised downward

Payroll employment (nonfarm) increased by 187,000 jobs in July 2023. But both the unemployment rate and the number of unemployed individuals (5.8 million) remained stable—unemployment’s been stalled between 3.4 and 3.7 percent since March 2022. Job gains were observed in health care, social assistance, financial activities, and wholesale trade, with joblessness among Asians decreasing to 2.3 percent. (The rates for adult men, adult women, teenagers, Whites, Blacks, and Hispanics stayed pretty much where they were last month.)

Temporary layoffs down; permanent job loss about the same

At the same time, the number of people on temporary layoffs went down significantly to 667,000, while those experiencing permanent job loss stayed at 1.4 million. Long-term (27 weeks or more) unemployment remained at 1.2 million, representing 19.9 percent of all unemployed individuals. And there were around 4 million people who preferred full-time employment but had to work reduced hours due to job unavailability, unchanged since June.

Who added jobs?

• Health care: 63,000 jobs added in July, particularly in ambulatory health care services, hospitals, and nursing and residential care facilities.
• Social assistance: 24,000 jobs added, spurred by individual and family services.
• Financial activities: 19,000 jobs added, reflecting an industry-wide average gain of 16,000 jobs per month in the second quarter.
• Wholesale trade: 18,000 jobs added after a period of minimal net change.
• Other services and construction: both sectors trended upward with 20,000 and 19,000 jobs added, respectively.

• Leisure and hospitality held steady at +17,000 following prior quarterly gains.
• Professional and business services also changed little in July at –8,000—a decline in temporary help services contrasted with upticks in professional, scientific, and technical services.

Average hourly earnings for all employees on private nonfarm payrolls rose by 0.4 percent, reaching $33.74. The average workweek for all employees edged down to 34.3 hours. And employment gains for May and June were revised downward by 25,000 and 24,000, respectively, due to updated reports and recalculated seasonal factors.