July nonfarm payrolls fell for the first time since 2020, undershooting expectations by over 100K jobs.
US nonfarm payrolls declined by 23K in July, the Bureau of Labor Statistics reported, marking the first contraction since December 2020. The figure missed the consensus forecast of an 80K gain by a wide margin.
June’s payrolls were revised down to a 20K increase from the previously reported 57K. Economists had anticipated a rebound in hiring following the slowdown in the prior month.
The unexpected drop signals potential cooling in the labor market, though details on sector breakdowns and unemployment rates remain pending.