US employers cut 23,000 jobs in July

The U.S. Labor Department reported that employers unexpectedly cut 23,000 jobs in July, a sharp reversal from expectations of nearly 100,000 new jobs. Revisions also shaved 103,000 jobs from May and June payrolls. The unemployment rate dipped to 4.1%, but only because 264,000 people left the labor force, pushing the participation rate to 61.4%, the lowest since February 2021. Job losses were concentrated in local public schools (-50,000), restaurants and bars (-26,000), and retailers (-19,000), while construction and factory jobs grew. The report is a political setback for President Donald Trump ahead of the midterm elections. Economists describe the market as 'no hire, no fire,' with low layoffs but difficulty for jobseekers. The ongoing Persian Gulf conflict has pushed up energy prices, straining family budgets, and the rise of artificial intelligence is clouding the hiring outlook. United States — Federal Reserve Bank of San Francisco researchers note that landing a job has become tougher, even for prime-age workers.