What the Bureau of Labor Statistics reported in July 2025

The Bureau of Labor Statistics (BLS) released its Employment Situation report for July 2025 in early August. This monthly report counts how many jobs employers added or cut, what the unemployment rate was, and which industries hired or shed workers. The report is based on two surveys: one of about 400,000 businesses and government agencies, and another of about 60,000 households.

The nonfarm payrolls figure — the number of jobs added or lost outside farming — is the headline number most news outlets report first. The unemployment rate, which measures the share of people actively looking for work who did not have a job, comes second. Both numbers matter for different reasons: payrolls show whether employers are confident enough to hire, while the unemployment rate shows how many people are struggling to find work.

These figures do not tell you whether you personally are may have access to to unemployment benefits, nor do they predict what your state's program will do. They are a snapshot of the national labor market at one moment. But they can help you understand the broader context in which you are job hunting or filing for benefits.

Key Takeaways

  • The BLS Employment Situation report comes out monthly and measures nonfarm payrolls (jobs added or lost) and the unemployment rate (share of people looking for work who do not have a job).
  • Nonfarm payrolls exclude farm workers, self-employed people, and household employees, so the number does not capture all job changes in the economy.
  • The unemployment rate counts only people actively searching for work; it does not include people who stopped looking or who are underemployed.
  • A rising unemployment rate during a period of job growth can mean more people are entering the job market, not necessarily that layoffs are accelerating.
  • National employment trends do not determine your state's unemployment benefits or your personal job prospects in your local market.

How nonfarm payrolls are counted and what they include

Nonfarm payrolls measure the total number of jobs on employer payrolls in the United States, excluding farm employment, self-employed workers, and private household employees. The BLS surveys about 400,000 businesses and government agencies each month and asks how many people are on their payroll in the pay period that includes the 12th of the month.

The number released each month is actually a preliminary count. The BLS revises the previous two months' figures as more data comes in. A July report might show that June's number was lower than first reported, or May's was higher. These revisions can be large enough to change the story — a month that looked strong might turn out weaker once the full data arrives.

Nonfarm payrolls do not include farm workers, people who are self-employed (including gig workers and contractors), or household employees like nannies or housekeepers. If you work as a 1099 contractor or drive for a rideshare company, you are not counted in this number even though you have work. This is why the payrolls figure alone does not tell the whole employment story.

What the unemployment rate measures and what it does not

The unemployment rate is the share of the labor force that is unemployed. The labor force includes people who have a job or who are actively looking for one. It does not include people who have given up looking, people in school full-time, retirees, or people unable to work.

To be counted as unemployed, you must be without a job, available to work, and actively searching — by sending out resumes, going to interviews, registering with a temp agency, or checking job boards. If you stopped looking three months ago, you are no longer counted as unemployed; you are counted as "not in the labor force." This means the unemployment rate can fall even if no new jobs were created, straightforward because discouraged workers stopped searching.

The unemployment rate also does not capture underemployment — people working part-time who want full-time work, or people in jobs far below their skill level. Someone working 10 hours a week at minimum wage is counted as employed, even if they need 40 hours of work to pay rent.

Why payrolls and unemployment can move in different directions

In some months, employers add jobs but the unemployment rate rises. This seems backwards, but it happens regularly. The most common reason is that more people enter the job market — they stop being discouraged and start looking again, or they move to a new state, or they graduate from school. If 200,000 jobs are added but 300,000 people start actively looking for work, the unemployment rate goes up even though hiring was strong.

The opposite also occurs: payrolls can fall slightly while the unemployment rate stays flat or drops. This usually means people who lost jobs stopped looking, so they left the labor force and were no longer counted as unemployed. The labor force itself shrank.

These disconnects matter because they show that the two numbers measure different things. A strong payroll number means employers are hiring. A falling unemployment rate means fewer people are actively job hunting relative to those who have work. Both are useful, but they answer different questions.

How July 2025 data connects to your state's unemployment system

Your state's unemployment insurance program operates independently of the national employment figures. The BLS report does not determine who is may have access to to benefits in your state, how much you receive, or how long you can collect. Those rules are set by your state legislature and administered by your state's labor department.

However, national employment trends can indirectly affect state programs. When unemployment rises sharply nationwide, states often see a surge in claims, which can strain processing times. Some states have laws that trigger extended benefits when the state unemployment rate hits a certain threshold. A few states adjust tax rates on employers based partly on national economic conditions.

If you are filing for unemployment benefits, focus on your state's specific rules, important date, and documentation requirements. The national report is context, not instruction.

Where to find the full July 2025 Employment Situation report

The BLS publishes the full Employment Situation report on its website at bls.gov. The report includes tables breaking down job changes by industry, demographic group, and state. It also includes the labor force participation rate, average hourly earnings, and average hours worked per week.

The report is released on the first Friday of each month, usually at 8:30 a.m. Eastern time. The July 2025 report was released in early August. If you want to read the actual data rather than news summaries, the BLS tables are free and do not require registration.

Many news outlets also publish summaries and analysis within minutes of release. These summaries can be useful for understanding what changed from the previous month, but they sometimes emphasize one number over others. Reading the BLS tables themselves gives you the full picture.

What employment data means for your job search or benefits claim

A strong national employment report — lots of jobs added, unemployment rate stable or falling — usually means your local job market is also active. Employers are more likely to be hiring, and you may have more options. But this is not may provide. Some regions lag behind national trends, and some industries are strong while others are weak.

If the national report shows rising unemployment or job losses, it does not mean you cannot find work. It means the overall market is tighter, competition may be stiffer, and you may need to cast a wider net or consider roles outside your first choice. Local labor market data from your state's labor department is more useful for your specific situation than the national headline.

If you are receiving unemployment benefits, the national employment situation does not change your benefits. Your benefits are based on your prior earnings, your state's rules, and whether you meet ongoing requirements like job search or work-registration. The national jobs report is information, not a trigger for changes to your account.

Frequently Asked Questions

Does a high unemployment rate mean I will not get unemployment benefits?

No. The national unemployment rate does not determine who is may have access to to benefits in your state. Your state's program has its own rules about who qualifies based on how you lost your job, how much you earned, and how long you worked. You must meet your state's specific requirements, regardless of whether national unemployment is 3% or 8%.

If the jobs report shows strong hiring, does that mean jobs are straightforward to find where I live?

Not necessarily. The national report averages across all states and industries. Your local market may be much weaker or much stronger than the national average. Check your state labor department's website for local unemployment rates and job postings in your area.

Why does the unemployment rate sometimes go up when jobs are being added?

The unemployment rate measures the share of people actively looking for work who do not have a job. If more people start looking — because they got discouraged and are trying again, or they moved to your state — the rate can rise even if employers are hiring. The two numbers measure different things.

Can I use the BLS report to predict whether I will find a job?

The national report gives you context about the overall economy, but it does not predict your personal job prospects. Your chances depend on your skills, your location, your industry, how you search, and how many other people are competing for the same roles. Local job market data is more useful than national headlines.

Does the BLS report include gig work or self-employed income?

No. Nonfarm payrolls count only employees on business payrolls. Self-employed people, contractors, and gig workers are not included, even though they have income and work. If you work as a 1099 contractor or drive for a rideshare company, you are not counted in the payrolls number.