THE EMPLOYMENT SITUATION -- JULY 2025 8:30 a.m. (ET) Friday, August 1, 2025
Total
nonfarm payroll employment changed little in July (+73,000) and has shown
little change
since
April, the U.S. Bureau of Labor Statistics (BLS) reported today. The
unemployment rate,
at
4.2 percent, also changed little in July. Employment continued to trend up in
health care
and in social assistance. Federal government continued to lose jobs.
This
news release presents statistics from two monthly surveys. The household survey
measures
labor
force status, including unemployment, by demographic characteristics. The
establishment
survey
measures nonfarm employment, hours, and earnings by industry. For more
information
about
the concepts and statistical methodology used in these two surveys, see the
Technical
Note.
Household Survey Data
Both the unemployment rate, at 4.2 percent, and the number of unemployed people, at 7.2 million, changed little in July. The unemployment rate has remained in a narrow range of 4.0 percent to 4.2 percent since May 2024. (See table A-1.)
Among the major worker groups, the unemployment rates for adult men (4.0 percent), adult women (3.7 percent), teenagers (15.2 percent), Whites (3.7 percent), Blacks (7.2 percent), Asians (3.9 percent), and Hispanics (5.0 percent) showed little change in July. (See tables A-1, A-2 and A-3.)
Among the unemployed, the number of new entrants increased by 275,000 in July to 985,000. New entrants are unemployed people who are looking for their first job. (See table A-11.)
In July, the number of long-term unemployed (those jobless for 27 weeks or more) increased by 179,000 to 1.8 million. The long-term unemployed accounted for 24.9 percent of all unemployed people. (See table A-12.)
The labor force participation rate, at 62.2 percent, changed little in July but has declined by 0.5 percentage point over the year. The employment-population ratio, at 59.6 percent, also changed little over the month but was down by 0.4 percentage point over the year. (See table A-1.)
The number of people employed part time for economic reasons, at 4.7 million, changed little in July. These individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs. (See table A-8.)
The number of people not in the labor force who currently want a job changed little in July at 6.2 million but was up by 568,000 over the year. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job. (See table A-1.)
Among those not in the labor force who wanted a job, the number of people marginally attached to the labor force changed little at 1.7 million in July. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the 4 weeks preceding the survey. The number of discouraged workers decreased by 212,000 in July to 425,000, largely offsetting an increase in the prior month. Discouraged workers are a subset of the marginally attached who believed that no jobs were available for them. (See Summary table A.)
Establishment Survey Data
Total nonfarm payroll employment changed little in July (+73,000) and has shown little change since April. Over the month, employment continued to trend up in health care and in social assistance. Federal government continued to lose jobs. (See table B-1.)
In July, health care added 55,000 jobs, above the average monthly gain of 42,000 over the prior 12 months. Over the month, job gains occurred in ambulatory health care services (+34,000) and hospitals (+16,000).
Social assistance employment continued to trend up in July (+18,000), reflecting continued job growth in individual and family services (+21,000).
Federal government employment continued to decline in July (-12,000) and is down by 84,000 since reaching a peak in January. (Employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.)
Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; leisure and hospitality; and other services.
Average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or .3 percent, to $36.44 in July. Over the past 12 months, average hourly earnings have increased by 3.9 percent. In July, average hourly earnings of private-sector production and nonsupervisory employees rose by 8 cents, or 0.3 percent, to $31.34. (See tables B-3 and B-8.)
The average workweek for all employees on private nonfarm payrolls edged up by 0.1 hour to 34.3 hours in July. In manufacturing, the average workweek held at 40.1 hours, and overtime edged down to 2.8 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged up by 0.1 hour to 33.7 hours in July. (See tables B-2 and B-7.)
Revisions for May and June were larger than normal. The change in total nonfarm payroll employment for May was revised down by 125,000, from +144,000 to +19,000, and the change for June was revised down by 133,000, from +147,000 to +14,000. With these revisions, employment in May and June combined is 258,000 lower than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)
2025 Preliminary Benchmark Revision to Establishment Survey Data to be released on September 9, 2025
|
Each year, the establishment survey estimates are benchmarked to comprehensive
counts
| of employment from the Quarterly Census of Employment and Wages (QCEW) for the month of March. These counts are derived from state unemployment insurance (UI) tax records that nearly all employers are required to file. At 10:00 a.m. (ET) on September 9,
2025, BLS will release the preliminary estimate of the upcoming annual benchmark revision to the establishment survey data. This is the same day that the first-quarter 2025 data from QCEW will be issued. The final benchmark revision will be issued with the publication of the January 2026 Employment Situation news release in February 2026.
https://www.bls.gov/news.release/empsit.nr0.htm
Quarterly Filing Reports
In the U.S., most employers are required to file payroll taxes quarterly using Form 941, Employer's Quarterly Federal Tax Return. This form is used to report federal income tax withheld from employees' wages, along with Social Security and Medicare taxes.
However,
there are exceptions and different deposit schedules for employers:
· Small employers with annual
employment tax liabilities of $1,000 or less may be eligible to file Form
944, Employer's Annual Federal Tax Return, and file their payroll taxes
annually if approved by the IRS.
· Agricultural employers are required
to file Form 943, Employer's Annual Federal Tax Return for Agricultural
Employees, annually.
· Deposit schedules (monthly or
semi-weekly) for income and FICA taxes depend on the employer's total tax
liability during a specified "look-back period."
o Employers with tax liabilities of
$50,000 or less during the look-back period generally follow a monthly
deposit schedule, meaning deposits are due by the 15th day of the following
month.
o Employers with tax liabilities exceeding
$50,000 during the look-back period are usually required to follow
a semi-weekly deposit schedule, with deposits due on specific days
depending on when employees are paid.
· There's also a $100,000 Next-Day Deposit Rule: If an employer accumulates $100,000 or more in tax liability on any day during a deposit period, the tax must be deposited by the next business day, regardless of whether the employer is on a monthly or semi-weekly schedule.
It's
important to remember that these are the general federal requirements. State
and local governments may have their own separate payroll tax filing
requirements and schedules.
https://www.google.com/search?q=in+the+us+do+companies+file+wage+taxes+monthly+or+quarterly
Comments
The US DOL needs to acquire more reliable “real-time” data for this report to avoid having to continually correct “jobs added” data.
I suspect that these continual corrections are caused by the “quarterly filing reports” outlined above. The stock market relies on these “monthly jobs reports” to send stocks up and down, so they can buy low and sell high.
Norb
Leahy, Dunwoody Ga Tea Party Leader
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