The national labor market data for July 2026 shows a period of cooling momentum. Total nonfarm payroll employment across the United States dropped by 23,000 jobs during the month. This decline follows a modest gain of 20,000 jobs in June, highlighting a broader trend of slowing job growth. While national numbers dipped, individual state performances varied significantly. Twenty-six states and the District of Columbia reported job growth, while twenty-four states saw employment numbers fall.
Maryland and Illinois led the country in monthly job growth, each adding 11,700 positions. Washington and Missouri followed with strong showings as well. Conversely, New Jersey faced the largest reduction in payrolls, losing 25,600 jobs. On a percentage basis, Maryland saw the highest growth at 0.4%, while New Jersey experienced the sharpest decline at 0.6%.
Despite the national slowdown, the construction sector remains a bright spot in the labor market. The industry added 22,000 jobs nationwide in July, showing more resilience than the broader economy. Twenty-eight states reported gains in construction employment, with Illinois leading the way by adding 3,200 roles. While some states like Texas saw losses in this specific sector, the national net positive suggests that building projects continue to drive demand for labor even as other sectors pull back.
Unemployment rates across the country also reveal a wide variance in economic health. South Dakota boasts the lowest unemployment rate in the nation at 2.0%, while the District of Columbia reports the highest at 5.9%. This high rate in D.C. is largely tied to federal workforce reductions initiated throughout 2025. Other states with rates of 5.0% or higher include Nevada, Washington, California, Connecticut, and Oregon, which indicates regional economic pressure. These figures offer a clear snapshot of where the labor market is tightening and where it remains under stress.
Looking at the broader 12-month trend, the U.S. labor market added 316,000 jobs overall. However, these gains are not distributed equally. Fourteen states and D.C. have seen net job losses over the past year. Virginia experienced the largest annual decline, shedding 47,900 jobs. These figures underscore a shifting economic environment where growth is becoming increasingly concentrated in specific states while others manage significant workforce contractions.