The national unemployment rate ticked down to 4.1 percent from 4.2 percent in June — on its face, a modest improvement. Yet the overall labor force participation rate slid to 61.4 percent in July, a level not touched since early 2021 — more than five years earlier. Hispanic labor force participation fell to 66.0 percent in June, down from 66.8 percent a year prior, and close to 18 million Hispanic adults sat outside the labor force entirely — roughly a million more than in June 2025. A growing number of economists point to immigration policy as a factor behind the shrinking labor pool. The Slowdown Reaches Beyond Any One GroupHispanic and teen unemployment didn't move in isolation — the broader jobs picture softened too.