Jeff Cox

 

WASHINGTON, 11 August. - (ANA) - The U.S. economy saw an unexpected declined in jobs during July while the unemployment rate edged lower, the Bureau of Labor Statistics reported Friday in a snapshot that showed a slowing employment picture.

 

Nonfarm payrolls fell by a seasonally adjusted 23,000 for the month, compared with a downwardly revised 20,000 for June. The Dow Jones consensus forecast had been looking for a gain of 83,000.

 

At the same time, the unemployment slipped to 4.1% as the labor force participation rate fell further to 61.4%, its lowest in more than five years, another indication that fewer Americans were working or looking for jobs.

 

At the same time, the unemployment slipped to 4.1% as the labor force participation rate fell further to 61.4%, its lowest in more than five years, another indication that fewer Americans were working or looking for jobs.

 

In addition to the weak numbers for June and July, the final count for May was revised down to 63,000, or 66,000 lower than the prior estimate. The revised numbers brought the 12-month average 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.

 

The drop was led by a 50,000 decline in local government education and a loss of 19,000 retail jobs. Financial activities also posted a fall of 14,000 and leisure and hospitality lost 40,000, a possible consequence of the World Cup tournament ending.

 

Healthcare, which has been the leading sector for job creation, rose by 22,000, which was below its 12-month average of 36,000. Construction also saw an increase of 22,000.

 

Private payrolls did increase for the month, up 30,000 as government jobs declined by 53,000.

 

While jobs held flat, worker pay also saw virtually no gain during the month. Average hourly earnings increased by just 2 cents, bringing the 12-month average down to 3.2%, below the forecast increase of 3.5% and the lowest since May 2021.

 

The report comes with Federal Reserve policymakers split on where interest rates should head in an economy where the labor market had been improving from a moribund year in 2025 while inflation has remained well above the central bank’s 2% target.   - (ANA) -

 

AB/ANA/11 August 2026 - - -