The U.S. labor market showed signs of slowing in July 2025, with employers adding 73,000 jobs to nonfarm payrolls, bringing total employment to 159.5 million. However, the previous two months' job gains were revised down by a combined 258,000, marking one of the largest downward revisions in over four decades. The unemployment rate remained steady at 4.2%. In Spain, unemployment decreased by 1,357 people in July, reaching approximately 2.4 million, the lowest level since 2002, although job growth was modest with only 4,408 new Social Security affiliates. The slowdown in employment was attributed in part to the end of the school year and limits on temporary employment, with some key sectors such as industry and services experiencing increases in unemployment. White House senior adviser Kevin Hassett acknowledged that job numbers were slower than expected. Analysts from Morgan Stanley noted that the scale of downward revisions resembled patterns seen before recessions, suggesting the equity market had already priced in the labor market slowdown. The revisions have raised concerns about the accuracy of labor market data and the Federal Reserve's assessment of economic conditions, with some commentators suggesting the Fed may be operating with incomplete information. Under the Biden administration, a pattern of downward revisions to jobs reports has been observed, with 40 out of 45 reports revised down, according to Jeffrey Gundlach and the Heritage Foundation.