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U.S. jobs slide in July, raising expectations for steadier mortgage rates
The unemployment rate held at 4.1% as May and June payrolls were revised down by a combined 103,000 jobs, while labor force participation fell to 61.4%.
The U.S. economy lost 23,000 jobs in July, and federal statisticians revised May and June payrolls downward by a combined 103,000 positions, leaving overall employment gains weaker than previously estimated, HousingWire reports. The unemployment rate was unchanged at 4.1%, according to the U.S. Bureau of Labor Statistics.
HousingWire notes wage gains have continued to be eroded by inflation, with housing demand and mortgage activity potentially shaped by the cooling hiring picture. National Association of Realtors Chief Economist Lawrence Yun said consumer price inflation is running faster, wiping out wage gains at everyday spending locations, while the wage gain still outpaces home price growth.
Job losses were concentrated in local government education and retail trade, while health care added jobs. Local government education shed 50,000 positions, retail trade fell by 19,000 jobs driven largely by declines at warehouse clubs, supercenters and other general merchandise retailers, and gas stations and fuel dealers lost another 5,000 positions.
Despite the headline decline, several broader labor measures were relatively stable, HousingWire adds. The number of unemployed Americans was little changed at 6.9 million, labor force participation fell to 61.4%, and the employment-population ratio was 58.9%, while First American Senior Economist Sam Williamson said softer hiring could tilt the balance away from further tightening and help keep mortgage rates in check.