US July jobs report shows 23,000 job losses

The U.S. Labor Department reported that employers cut 23,000 jobs in July, a sharp miss versus forecasts of near 100,000 job gains, and revised down May and June payrolls by a combined 103,000. The unemployment rate fell 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 public schools (-50,000), restaurants and bars (-26,000), and retailers (-19,000), while construction and manufacturing added jobs. Wage growth slowed to 3.2% year-over-year, the smallest increase since May 2021. The report is a political setback for President Donald Trump ahead of midterm elections and complicates United States — Federal Reserve rate decisions, as the Fed had kept rates unchanged but faced dissents favoring a hike. Economists noted private payrolls grew and the public school drop may be a seasonal glitch. The labor market is described as 'no hire, no fire,' with weak hiring so far this year and a shrinking pipeline into employment, according to United States — Federal Reserve Bank of San Francisco researchers.