The U.S. economy unexpectedly lost jobs in July, a significant deviation from forecaster expectations. reported, "U.S. economy surprisingly lost 23,000 jobs in July." This figure fell far short of projections, as noted, "Forecasters had expected payroll job growth to be 88,000, so the report was a pretty big miss."
The overall job loss was accompanied by a decrease in the unemployment rate, which edged down to 4.1%. However, clarified that this fall was "on a further decline in labor force participation rate."
Despite the overall job losses, some sectors saw gains. Construction employment "rose by 22,000 in July,". Manufacturing also experienced growth, with employment rising "by 5,000 in July." In contrast, the leisure and hospitality sector "lost 40,000 jobs in July," placing it just barely above its pre-pandemic employment levels. Federal government employment also decreased, dropping "by 3,000 in July."
Looking at broader trends, prime-age employment, for those aged 25 to 54, "has held near all-time highs" and "rose in July," reported. The three-month moving average of job gains, revised downward for May and June, was 20,000 in July. While the report indicates a cooling labor market, also suggested that the "data suggests that the U.S. labor market is moving away from triggering one major recession indicator." Politically, the jobs report portends "more trouble ahead for President Donald Trump, who has been weighed down by historically low consumer sentiment and voter frustration over too-high inflation,".
