U.S. employers added 73,000 jobs in July, lifting total non-farm payrolls to 159.5 million, while the unemployment rate held at 4.2%. The modest gain was well below recent averages and deepens evidence that hiring momentum is fading. Revisions to prior data showed the labor market was substantially weaker than first reported: May employment was cut by 125,000 and June by 133,000, leaving the two-month total 258,000 lower. Goldman Sachs said the combined downward change is the largest outside a recession since 1968 and warned that the Bureau of Labor Statistics’ annual benchmark update due 9 September could subtract a further 550,000–950,000 positions from the level of payrolls. The softer figures prompted White House National Economic Council adviser Kevin Hassett to concede that “jobs numbers were slower than we expected.” Analysts said the downdraft in revisions, coupled with slower current hiring, indicates the labor market is cooling more quickly than headline unemployment suggests. Additional data point to waning economic momentum. The Institute for Supply Management’s services index slipped to 50.1 in July, barely above the expansion threshold, and its employment component fell to 46.4, signalling outright job losses in the sector. Together, the reports reinforce expectations that policy makers and investors will scrutinise upcoming releases for signs the slowdown is deepening.