Employers unexpectedly cut 23,000 jobs in a sign of a wilting labor market
US employers unexpectedly cut 23,000 jobs in July, signalling a weakening labour market and complicating the Federal Reserve’s decisions on interest rates. The result was well below forecasts of roughly 100,000 new jobs and represents a political setback for President Trump ahead of the midterm elections.
Revisions also reduced employment estimates for May and June by a combined 103,000 jobs. The unemployment rate fell to 4.1%, but largely because 264,000 people left the labour force; local schools, restaurants and bars, and retailers recorded particularly large job losses.
- US employers cut 23,000 jobs in July.
- Earlier payroll figures were revised sharply down.
- Falling unemployment reflected people leaving the workforce.