The U.S. job market is showing signs of weakening, with only 73,000 jobs added in July, less than expected. Economists warn that job growth isn’t keeping up with population growth, suggesting a contracting market. Revised data shows 258,000 fewer jobs added in May and June than initially thought.

Job growth has averaged 35,000 in the past three months, a sharp decline from the 111,000 monthly average in the first three months of 2025. New jobs are concentrated in health care and social assistance, indicating a lack of broad-based opportunities. Tariffs and other factors are creating headwinds for the job market.

Concerning signs continue in the U.S. job market, with the labor force participation rate dropping to its lowest level since 2022. The unemployment rate rose to 4.2% in July, with nearly 25% of unemployed Americans long-term unemployed. Layoffs remain low, but the lack of movement in and out of jobs poses challenges for job seekers.

Read more at CNBC: Why the U.S. job market has soured