July nonfarm payrolls dropped unexpectedly by 23,000, missing forecasts as unemployment fell to 4.1%.
US nonfarm payrolls fell by 23,000 in July, defying expectations for an 80,000 increase. The decline marks the first negative print since 2020, signaling potential labor market cooling.
June’s gain was revised down sharply to 20,000 from 57,000. The unemployment rate dropped to 4.1%, below the anticipated 4.2%, while the prior month’s rate held steady at 4.2%.
Markets may reassess Fed rate cut expectations following the weaker-than-expected data.