The US economy unexpectedly lost 23,000 jobs in July, rather than adding the roughly 80,000 economists had forecast, while employment gains for May and June were revised down by a combined 103,000. The figures point to a weaker labour market and may reduce pressure on the Federal Reserve to raise interest rates despite persistently high inflation.

Losses were concentrated in local government education, which shed 50,000 posts, and retail, down 19,000, although healthcare continued to add jobs and the private sector gained 30,000 overall. The unemployment rate remained at 4.1%, with the report suggesting that fewer people participating in the labour force may have helped keep it unchanged.