US private employers experienced a strong rebound in July 2025, adding 104,000 jobs and marking the largest gain since March. This surge comes as a welcome turnaround following June’s revised loss of 23,000 jobs, indicating renewed momentum in the labor market despite ongoing economic headwinds. Notably, July’s job growth surpassed economists’ expectations, who had predicted a more modest increase.

The majority of new jobs came from the service-providing sector, which contributed 74,000 positions. The leisure and hospitality industry led the way with 46,000 new jobs, followed by solid gains in financial activities (28,000) and trade, transportation, and utilities (18,000). However, not all service areas saw growth; education and health services experienced a significant decline, losing 38,000 jobs during the month.

On the goods-producing side, the sector added 31,000 new positions, buoyed by hiring in construction (15,000), natural resources and mining (9,000), and manufacturing (7,000). Regional results showed the West was the strongest, adding 75,000 jobs, with the South also seeing notable growth, while the Northeast recorded a decline.

Wage growth remained robust and steady in July. Annual pay rose 4.4% for employees remaining in their current roles and jumped 7.0% for those who changed jobs, maintaining this pace for the fourth consecutive month. These figures suggest that, despite some sector-specific setbacks, the broader labor market continues to demonstrate resilience.

Overall, July’s employment report signals cautious optimism for the remainder of the year, highlighting continued employer confidence and steady wage growth amidst ongoing economic uncertainties. For job seekers and businesses alike, the latest data reflect a labor market that, while uneven, is proving adaptable in the face of change.