IWPR Statement: Disappointing July Jobs Report Reveals Deepening Divides and Warning Signs for Working Class Jobs

FOR IMMEDIATE RELEASE
August 7, 2026

The Jobs Report for July 2026 was released today by the Bureau of Labor Statistics (BLS). The following is a statement from Kate Bahn, PhD, chief economist and senior vice president of research at the Institute for Women’s Policy Research (IWPR), on what the current report reveals about the larger economy and its impact on women and families.

The Jobs Report for July not only reveals an unexpected 23,000 jobs lost, but also alarming economic signs for working-class workers, including large hits to public education jobs and slowing wage and job growth in the health care sector.

Slowing Growth in Health Care Wages and Jobs

While the health care industry continued to lead what little job growth there was, much of that growth was in lower-wage jobs, like home health aides and nursing assistants. Meanwhile, wages in that industry are stagnating. Most health services and social assistance jobs—78.7%—are held by women, and women-dominated fields tend to be less secure and lower-quality in terms of benefits and pay.

Public Education and Local Government Jobs Decline

Jobs in local government fell by 57,000, including 50,000 jobs lost in local public education—a sector that has historically provided good middle-class jobs for women. And while the federal government saw its highest job openings rate since May 2024, at 4.9%, this does not mean these jobs will go to workers with the same experiences or backgrounds as those who lost jobs in this sector last year. The 2025 seismic disruptions to the civil service disproportionately impacted women of color, and recent evidence shows that most new federal openings are in defense-related agencies.

Black Women Continue to Face Higher Unemployment

At the same time, Black women continue to face a wide gap in unemployment compared with other groups. Their unemployment rate in July was 5.4%, a ratio of 1.7 when compared with White women. During Black Women’s Equal Pay Day and Moms’ Equal Pay Day in recent weeks, IWPR drew attention to the wide disparities in women’s pay as well as the fact that higher levels of education for Black women—who are more likely to be family breadwinners—do not translate to equal pay.

Relevant Reports: Degrees Don’t Close the Divide: Black Women’s Educational Attainment Doesn’t Translate to Equal Earnings; Barriers, Not Bootstraps: Job Prospects Are Uneven for Young Black Women

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The Institute for Women’s Policy Research (IWPR) is the nation’s leading think tank working to win economic equity for all women. Through evidence-based research, policy solutions, and advocacy, IWPR is advancing the power and well-being of women across the US. Learn more at IWPR.org.