July nonfarm payrolls fell 23,000, defying expectations for an 83,000 gain and signaling a cooling labor market.
The US economy shed 23,000 jobs in July, a sharper decline than the downwardly revised 20,000 loss in June. The figure fell well short of the Dow Jones consensus estimate of 83,000 new positions, marking the second consecutive month of job losses.
Unemployment edged down to 4.1%, though labor force participation dropped to 61.4%, its lowest level in over five years. Analysts had anticipated a modest rebound following June’s weak print, but the data underscores growing concerns about economic momentum.
Markets are likely to weigh the report’s implications for Federal Reserve policy, as weaker hiring could fuel expectations for earlier rate cuts.