JOBS
U.S. economy unexpectedly loses 23,000 jobs in July
The Bureau of Labor Statistics said U.S. employers cut 23,000 jobs in July, while the unemployment rate edged down to 4.1% as fewer people were counted as working or looking for work.
The Bureau of Labor Statistics said U.S. employers cut 23,000 jobs in July, while the unemployment rate edged down to 4.1% as fewer people were counted as working or looking for work.
What This is
- U.S. nonfarm payrolls fell by 23,000 jobs in July, an unexpected monthly decline.
- The unemployment rate fell to 4.1%, but labor force participation also dropped to 61.4%, meaning fewer people were working or looking for work.
- About 264,000 people left the workforce in July, which helped push the unemployment rate down even as jobs fell.
- Job losses were concentrated in government, especially local education, as well as leisure and hospitality and retail.
- Health care added jobs, helping offset losses in other parts of the economy.
- Markets reacted by lowering expectations for near-term Federal Reserve rate hikes, pushing down Treasury yields and lifting stocks and gold.
Why This Matters
- A drop in jobs alongside a lower unemployment rate can be misleading when people stop looking for work and leave the labor force.
- Cuts in local schools, restaurants, and retail can hit communities because these sectors employ many hourly and public-sector workers.
- Weaker hiring and slower wage growth can reduce pressure on the Federal Reserve to keep interest rates high to fight inflation.
- Shifts in rate expectations can quickly move stock prices, bond yields, and gold, which affects borrowing costs and household wealth.