One chart shows where the jobs are for July.
- In July, the information services sector experienced a significant decline, with a loss of 20,000 jobs.
- The number of professional and business services and financial activities that experienced payroll declines was 1,000 and 4,000, respectively.
Last month, the U.S. saw a significant slowdown in hiring, with both the information and financial sectors experiencing job losses.
In July, the information services sector had a significant job loss of 20,000, while professional and business services and financial activities experienced payroll declines of 1,000 and 4,000, respectively.
"Julia Pollak, ZipRecruiter's chief economist, stated that these sectors are renowned for producing high-paying, high-quality jobs. However, the labor market is no longer normalizing, and a further decline could trigger a vicious cycle of job losses, decreased consumer spending, reduced business revenue, and more job cuts."
The unemployment rate increased to 4.3%, its highest since October 2021, as nonfarm payrolls only grew by 114,000, which is significantly lower than the estimated 185,000 by the Dow Jones.
To be sure, there were some relative bright spots.
In terms of job creation, health care once again topped the list, with an addition of 55,000 employees to payrolls. Notable gains were also made by construction (25,000), government (17,000), and transportation and warehousing (14,000). Leisure and hospitality, which has been a leading gainer in recent years, added 23,000 jobs.
LPL Financial's chief economist, Jeffrey Roach, stated that the latest labor market snapshot indicates a slowdown but not necessarily a recession. However, early warning signs suggest additional weakness.
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