July nonfarm payrolls fell 23K, defying expectations of an 88K gain and signaling a sharp labor market slowdown.
US employers cut 23K jobs in July, marking the first contraction since 2020 and missing forecasts of an 88K increase. The prior month’s gain was revised down to 20K from 57K.
The unemployment rate held at 4.1%, below the 4.2% consensus, while labor force participation dipped to 61.4% from 61.5%. Economists had anticipated a modest rebound after June’s weak print.
Markets are likely to reassess Fed rate cut expectations as the data underscores cooling labor demand.