NCCI Reports Softening Employment and Payroll Growth
The Labor Market Insights report provides a monthly overview of key labor market statistics.
As the changing workforce and economic conditions continue to be top of mind for workers compensation executives, this valuable resource delivers timely perspectives on what the latest jobs reports mean for the industry. The data and insights shared in this monthly publication are designed to provide just-in-time information to help industry leaders make informed decisions.
Key Insights:
Net employment declined by 23,000 jobs in July. Downward revisions to the past two months subtracted an additional 103,000 jobs from the initial estimates for May and June. Government employment declined by 53,000 jobs, with 50,000 of those job losses in local government education, accounting for the gap between total employment and private employment changes.
The industry details are telling an interesting story. Leisure and hospitality services and retail trade both declined for a second consecutive month, with employment declining by 40,000 and 20,000 jobs, respectively, in July. Employment weakness in these sectors might reflect higher gas prices altering consumer behavior.
Outside of these sectors, construction and health care employment grew solidly while the remaining sectors were little changed.
Average hourly earnings growth has continued to slow. Weakening has been concentrated in trade, health care, and private education, while wage growth has remained solid in construction, manufacturing, and some areas of service sectors.
This softening wage trend combined with the slower employment growth over the past several months has put downward pressure on payroll growth for workers compensation.
- Labor force participation has been depressed over the past two months led by younger workers. This may relate to declining employment in leisure and hospitality services during the summer season.
Click the image to access the Labor Market Insights report.
Connect with our Economics Team if you have questions or want to gain additional insights.
Mari Villalta and Stephen Cooper, August 10, 2026