In July 2026, the US economy unexpectedly lost 23,000 jobs, while the unemployment rate slightly decreased. This was reported by CNBC.
Seasonally adjusted, the number of employed in the non-farm sector decreased by 23,000, while Dow Jones analysts had predicted the creation of 83,000 new jobs.
The unemployment rate fell to 4.1%, and the labor force participation rate dropped to 61.4%, the lowest figure in over five years.
Revisions were also made to the data for May and June. In June, there was a reduction of 20,000 jobs, and the May figure was revised down to 63,000. As a result, the average figure for the last 12 months has decreased to 34,000 jobs.
The largest decline was recorded in local government education, where approximately 50,000 jobs were lost. Job cuts were also reported in retail and financial sectors.
The healthcare sector, traditionally a leader in job creation, added 22,000 jobs in July, but this figure remained below the annual average level.
Wage growth was also weak. The average hourly wage increased by only 2 cents, resulting in the average growth over the last 12 months decreasing to 3.2%, falling short of the projected 3.5%.
