United States Unemployment Rate

The US unemployment rate rose slightly to 4.2% in July 2025 from 4.1% in June, aligning with market expectations. The number of unemployed increased by 221,000 to 7.236 million, while employment fell by 260,000 to 163.106 million. The labor force contracted by 38,000 to 170.342 million. The labor force participation rate dipped by 0.1 percentage points to 62.2%—its lowest level since November 2022—while the employment-population ratio also declined by 0.1 points to 59.6%, the weakest since December 2021. The broader U-6 unemployment rate, which includes discouraged workers and those working part-time for economic reasons, rose to 7.9% from 7.7% in June.