July nonfarm payrolls fell 23K, sharply below the 80K gain expected and marking the first decline in over a year.
US nonfarm payrolls dropped by 23K in July, the Bureau of Labor Statistics reported. The decline contrasts with a revised 20K increase in June and missed the 80K gain economists had forecast.
June’s figure was revised down from an initial 57K gain. The last time payrolls fell was in December 2020, during the pandemic recovery phase.
Markets had priced in a continued labor-market expansion, and the unexpected contraction may weigh on rate-cut expectations.