The U.S.
Economy Just Experienced Its 5th Largest Month of Job Losses Since 2020
Here’s Why It’s Both Good and Bad News The July jobs report delivered a surprise to the downside, forcing investors to rethink their view of monetary policy for the rest of the year. The U.S. economy saw a 23,000 decline in non-farm payrolls, well below economists’ estimates calling for an 83,000 gain. Interestingly, the unemployment rate also declined slightly to 4.1%, as fewer Americans participated in the labor force last month.
The 23,000 decline is the fifth-largest monthly decline since 2020. The report brings both good and bad news. On the positive front, a weaker labor market could prevent the Fed from raising interest rates at its September meeting.