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Economy

U.S. Hiring Turns Negative As Labor Market Weakens

Despite the drop in employment, the unemployment rate edged down to 4.1% as labor force participation fell to 61.4%, its lowest level in more than five years

,   and  TIPP Staff
2 min read
Photo by Compagnons / Unsplash

The U.S. economy unexpectedly lost 23,000 jobs in July, signaling a weaker labor market than economists had anticipated, according to the Bureau of Labor Statistics. The decline followed a downwardly revised loss of 20,000 jobs in June, while economists had expected payrolls to increase by 83,000.

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Despite the drop in employment, the unemployment rate edged down to 4.1% as labor force participation fell to 61.4%, its lowest level in more than five years. The report also revised May's payroll gains lower, reducing the 12-month average monthly job growth to just 34,000.

According to the report, local government education lost 50,000 jobs, while retail and financial activities also posted declines. Healthcare remained a source of job growth but added fewer positions than its recent average. Wage growth also slowed.

The weaker-than-expected data reduced market expectations of a Federal Reserve rate hike, while U.S. stock futures rose and Treasury yields declined following the report.

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