U.S. nonfarm payroll employment declines in July 2026

The United States labor market showed signs of slowing momentum in July 2026. Total nonfarm payroll employment declined by 23,000 jobs nationally, following a modest increase of 20,000 in June. While 26 states and the District of Columbia saw employment gains, 24 states recorded declines, collectively shedding 122,100 jobs. New Jersey experienced the largest state-level decline with a loss of 25,600 jobs.

On a state-by-state basis, Maryland and Illinois led employment gains with 11,700 jobs each, followed by Washington with 11,600. Construction remained a resilient sector, adding 22,000 jobs during the month.

In Arkansas, nonfarm job growth moderated, with an estimated increase of 1,900 jobs bringing the total to 1,341,700. Despite this slow growth, the state's jobless rate dipped to 4%, down from 4.1% in July 2025. The labor force in Arkansas grew by approximately 1.6% year-over-year, and the labor force participation rate rose to 59.2%.