U.S. jobs report July 2025 reveals a sharp slowdown in hiring, with just 73,000 jobs added—the weakest monthly gain in over two years. The unemployment rate rose to 4.2%, raising fresh concerns about the U.S. labor market’s strength. Making matters worse, major downward revisions for May and June exposed earlier job growth as overstated. With the Federal Reserve closely watching labor data for interest rate decisions, this report could shift economic policy. Key industries like retail and tech are showing clear signs of cooling. This surprising update signals early warning signs of a possible economic slowdown or recession.