U.S. Unemployment

Beyond the 23,000 jobs the economy shed in July, downward revisions totaling 103,000 to May and June payrolls suggest the U.S. labor market has less momentum than previously believed, with wage growth cooling to its slowest pace since 2021.

Nonfarm payrolls fell by 23,000 in July, defying economist forecasts for solid gains, as government, retail, and leisure employment shrank. The unemployment rate edged down to 4.1%, but mainly because labor force participation dropped to a more-than-five-year low of 61.4%.

U.S. employers announced 33,429 job cuts in July, the smallest monthly total in two years according to Challenger, Gray & Christmas, down 27% from June. Artificial intelligence was cited as the leading reason for layoffs for the fifth consecutive month.