The assessment showed that the number of unemployed persons in the United States fell by 1.4 million last month.
The U.S. unemployment rate dropped to 10.2% in July, falling slightly below June's 11.1%, according to the Bureau of Labor Statistics.
The deceleration in nonfarm payrolls signals that a spike in coronavirus infections that saw almost two-thirds of the country pause or roll back the easing of lockdown restrictions last month prompted employers to lay off workers and to hold off on hiring staff.
"While these numbers are a bit better than forecast, there still isn't much to be upbeat about from this jobs report", said Steve Rick, chief economist at CUNA Mutual Group.
Retail added just over a quarter million jobs in July, but employment in the sector is still off by almost a million since February. Workers will continue to receive the $600 CARES Act supplement for eligible claims for weeks ending April 4 through July 25. However, despite the gains from July, June and May, employment in the industry is down by 2.6 million since February.
The number of full-time jobs in the economy fell, from 63,100 to 61,800, but total employment was up with an increase in part-time jobs, from 10,500 to 12,900.
By age, teenagers have the highest rates of 19.3%.
The US economy has lost roughly 10 million jobs since February, when unemployment was hovering around 3.5% - a 50-year low. Hawaii, California, Louisiana, and NY round out the top five states, all suffering with unemployment rates that top 16%.
While some states have seen unemployment applications recede from record highs after the coronavirus pandemic roiled America's employment picture, some have suffered stubbornly high job losses months into the recovery.