The U.S. economy lost 23,000 jobs in July, an unexpected decline that came alongside a drop in the unemployment rate to 4.1%, the Bureau of Labor Statistics reported Friday.
Nonfarm payrolls fell by a seasonally adjusted 23,000 for the month, compared with a downwardly revised 20,000 decline for June. The Dow Jones consensus forecast had called for a gain of 83,000. The labor force participation rate fell further to 61.4%, its lowest level in more than five years.
May's job count was also revised down to 63,000, or 66,000 lower than the prior estimate. The revisions brought the 12-month average job gain down to just 34,000. "The July employment report solidified that the labor market is not out of the woods quite yet," said Nicole Bachaud, a labor economist at ZipRecruiter.
Sector breakdown
- Local government education: -50,000
- Retail: -19,000
- Financial activities: -14,000
- Leisure and hospitality: -40,000, possibly tied to the World Cup tournament ending
- Healthcare: +22,000, below its 12-month average of 36,000
- Construction: +22,000
Private payrolls rose by 30,000 for the month while government jobs declined by 53,000. Average hourly earnings increased by just 2 cents, bringing the 12-month wage growth average down to 3.2%, below the forecast 3.5% and the lowest since May 2021.
