The US economy lost 23,000 jobs in July, contrary to forecasts for growth, signalling increased employer caution amid uncertainty over tariffs and the war in Iran. The report matters because it suggests the labour market may be weakening despite a slightly lower unemployment rate, which was partly affected by people leaving the workforce.

Employment in film and music rose by 9,900 to 332,700, offering a positive sign for an entertainment sector concerned about a production slowdown, while broadcasting and content-provider jobs fell by 1,500 to 335,800. The Bureau of Labor Statistics also revised May and June employment estimates down by 103,000; healthcare added 22,000 jobs, hourly pay rose two cents to $37.62, and annual wage growth was 3.2%.