Jobs report shows modest gains, massive downward revisions to prior months

Total nonfarm payroll employment changed little in July (+73,000) and has shown little change since April, the U.S. Bureau of Labor Statistics reported Friday. The unemployment rate, at 4.2%, also changed little in July. Employment continued to trend up in health care and in social assistance.

“The latest jobs report was poor, showing modest job gains in July and massive downward revisions to prior months. The revised estimate for June now shows a gain of only 14,000 jobs during that month, a reduction of 258,000 from the initial estimate,” said America’s Credit Unions Chief Economist Curt Long. “This report reframes several debates including the overall momentum in the economy, the impact of tariffs, and the prospect for rate cuts. Market expectations for a September rate cut jumped on the release of the report, and a cut by the October FOMC meeting is fully priced in. Credit unions are second to none when it comes to helping their members through financial distress, and they are well-positioned to do so should we encounter a period of rising unemployment.”