The U.S. labor market slowed sharply in July, with nonfarm payrolls rising by just 73,000, well short of the 104,000 jobs economists had expected. The Bureau of Labor Statistics also reported that the unemployment rate edged up to 4.2 percent, its highest level since late 2021, while total employment reached 159.5 million. Much of the concern centers on revisions to earlier data. Payroll gains for May and June were reduced by a combined 258,000 positions, the steepest two-month downward adjustment recorded outside recessionary periods since the late 1960s. The cuts lowered June’s headline gain to 14,000 and May’s to 19,000, recasting what had appeared to be a resilient labor market. Analysts warn that more changes are likely. Goldman Sachs estimates the BLS’s annual benchmark update, due on September 9, could trim a further 550,000–950,000 jobs from the March 2025 level—equivalent to removing roughly 45,000–80,000 jobs from each month over the past year. The prospect of additional downward revisions, coupled with soft current hiring, is expected to factor into Federal Reserve deliberations over the coming months.