July Jobs Report: What It Means For Your Job Search

Forbes

a day ago

The July jobs report shows the economy added 73,000 jobs, with unemployment holding steady at 4.2%. While the stable unemployment rate might seem reassuring at first glance, the implications for job search success are more nuanced. Additionally, revisions revealed that May and June employment was lower than initially reported, with the two months combined showing 258,000 fewer jobs than previous estimates. If you're currently looking for work or considering a career move, understanding what's happening by industry and sector can help you better navigate the current job market. The data indicates employment growth is more modest than forecasted, making it increasingly important for job seekers to know where to look for opportunities.
Where the Jobs Are By Sector
Despite modest job growth overall, employment gains were concentrated in specific sectors:
• Healthcare: Led with 55,000 jobs added in July, driven by growth in ambulatory health care services (+34,000) and hospitals (+16,000). Over the past 12 months, healthcare employment has surged by 543,000 positions, making it the most consistent growth sector.
• Social assistance: Continued its upward trend with 18,000 new positions in July, with most gains occurring in individual and family services (+21,000).
• Federal government: Employment declined by 12,000 jobs in July and is down by 84,000 since reaching a peak in January.
Most other major industries showed little or no change in employment, reflecting cautious hiring across much of the economy. Companies still need IT support, marketing expertise and operational leadership, even as they become more selective about hiring. The work exists, but it's taking different forms that demand a more targeted approach.
Contract Work And Your Job Search
One of the most significant shifts happening right now is the move toward contract and project-based work. The gig economy had a market size of $556.7 billion in 2024 and is expected to more than triple to $1,847 billion by 2032, the World Economic Forum reports. This trend is particularly strong in technology, where sixty-five percent of tech leaders said they're increasing their use of contract talent in the second half of 2025, according to Robert Half's 2025 Tech and IT Job Market Outlook.
This shift creates new opportunities for job seekers, though it requires weighing the trade-offs. Contract work often pays more per hour than traditional employment and provides valuable experience across different companies and industries. It also offers a pathway into organizations that might not be hiring full-time employees but still need specialized skills.
Of course, there are downsides. Contract work typically doesn't include benefits and provides less job security. However, in a market where traditional full-time opportunities are scarcer, contract work can serve as a bridge to your next permanent role or even become a preferred career path.
Skills For Landing Jobs In Today's Market
The current job market has accelerated a trend that was already underway. Employers increasingly focus on what you can do rather than where you went to school or what your previous job titles were.
This shift creates opportunities for professionals who might not have traditional credentials but possess in-demand skills:
• AI literacy is essential: Familiarity with AI tools like ChatGPT, Claude or industry-specific applications can significantly boost your marketability. Many employers now expect candidates to understand how to leverage AI for content creation, data analysis and process automation.
• Core digital skills matter: Understanding basic data analysis, social media marketing or project management software can set you apart from other candidates.
• Results-focused approach is key: The professionals who succeed in their job search are those who can show how they use these tools to enhance productivity and deliver better results.
The key is identifying which skills are most valuable in your target industry and investing time in developing them. Online courses, certifications and hands-on projects can demonstrate competency just as effectively as formal education.
What the Unemployment Rate Reveals About Jobs
While the unemployment rate held steady at 4.2% in July, the underlying details tell an interesting story. The number of new entrants to the job market increased by 275,000 to 985,000. These are people looking for their first job who are facing a much tougher market than recent graduates experienced in previous years.
What's more significant is the rise in long-term unemployment. The number of people who have been looking for work for more than six months increased by 179,000 to 1.8 million, representing nearly 25% of all unemployed people. Additionally, 568,000 more people over the past year have stopped actively searching, whether due to perceived lack of opportunities or barriers like childcare constraints, skills mismatches or discouragement.
If you've been conducting a job search for several months without success, you're not alone. The key is avoiding the trap of losing hope and withdrawing from the job market entirely. This is precisely when persistence and adjustments to your approach become most important.
Job Search Strategies That Work
Given these conditions, successful job searching requires a more targeted and flexible approach. Here are key strategies to consider:
• Target growth industries: Focus on sectors offering the most consistent opportunities right now, though competition will be fiercer.
• Look beyond large corporations: While big companies have pulled back on hiring, smaller organizations and startups often move more quickly and may be willing to take chances on candidates who bring the right skills and attitude.
• Expand your job search: Consider remote work opportunities, as fully remote jobs have increased over the last several years, suggesting many employers continue to see value in offering flexible work options.
• Prioritize networking: In a tighter job market, personal connections and referrals carry extra weight. Reach out to former colleagues, attend industry events and maintain an active presence on professional social media platforms.
• Be open to contract work: Temporary and contract roles can provide income while you continue searching for permanent positions, and they often lead to full-time opportunities.
How To Approach Your Job Search
According to economists, the job market is expected to remain somewhat challenging through the rest of 2025. However, opportunities still exist for professionals who adapt their job search strategies, focus on growth sectors like healthcare and stay open to contract work. While the July jobs report provides a snapshot of current conditions, your individual success depends more on how you respond than on the overall statistics. Focus on what you can control, stay persistent and remember that you don't need countless opportunities—you just need the right one.