US Nonfarm Payrolls Fall by 23,000 in July, Defying Expectations
Macro Impact 4
The US Bureau of Labor Statistics reported that nonfarm payrolls fell by 23,000 in July, defying Dow Jones expectations of an increase of 83,000. The unemployment rate edged down to 4.1%, while labor force participation continued to decline. Revised payroll figures for May and June were also lowered by a combined 103,000, reflecting a weaker-than-expected US labor market. The job losses were driven by the government sector, leisure and hospitality, and retail trade, with local government employment dropping by nearly 60,000, mostly in education. Meanwhile, private-sector employment rose by 30,000 for the second consecutive month, led by health care and social assistance. This report may prompt the Federal Reserve to hold off on raising interest rates as it assesses the balance between inflationary pressures and risks to the labor market.
