WASHINGTON — Employment in local government education fell sharply in July, with payrolls in the sector declining by 50,000, according to data released by the U.S. Bureau of Labor Statistics on Friday, adding to a month of broadly weak U.S. job growth.
The decline in local government education was the largest reported sectoral decrease in the July employment report. The BLS said employment in the sector had shown little net change over the previous 12 months, indicating the July drop represented a notable break from its recent pattern.
Overall, U.S. nonfarm payroll employment decreased by 23,000 in July, while the unemployment rate was little changed at 4.1%. The figures contrasted with an average monthly payroll gain of 34,000 over the previous 12 months, according to the BLS establishment survey.
The education decline came as employment in several other major industries remained broadly stable. Health care continued to add jobs, increasing by 22,000 in July, although that was below its average monthly gain of 36,000 over the prior year. Employment in professional and business services, manufacturing, construction, transportation and warehousing, leisure and hospitality, and other services showed little change during the month.
Retail trade also contracted, losing 19,000 jobs. Employment fell by 21,000 at warehouse clubs, supercenters and other general merchandise retailers, while gasoline stations and fuel dealers shed 5,000 jobs. Sporting goods, hobby, musical instrument, book and miscellaneous retailers added 10,000 positions.
The weakness in payroll employment followed substantial downward revisions to the previous two months. The BLS revised May's job gain to 63,000 from 129,000 and June's gain to 20,000 from 57,000. Together, those revisions reduced employment growth in May and June by 103,000 jobs from previously reported levels.
Despite the payroll decline, the unemployment rate edged down from 4.2% in June to 4.1% in July, while the number of unemployed people fell to about 6.9 million. The labor force participation rate declined to 61.4%, from 61.5% in June.
The BLS is scheduled to release its preliminary annual benchmark revision to establishment survey data on Aug. 28. The next monthly Employment Situation report, covering August, is scheduled for Sept. 4.
