Home›Bonds & Rates›Economy›U.S. payrolls fall by 23,000 in July as unemployment d…

U.S. payrolls fall by 23,000 in July as unemployment dips to 4.1%

May and June job gains were revised down by a combined 103,000, and the labor force shrank as the participation rate slipped to 61.4%.

Reported · Written up by our desk · Economy

U.S. employers shed 23,000 jobs in July, according to data released by the U.S. Bureau of Labor Statistics, undershooting the 88,000 increase expected by economic consensus, in a report first highlighted by ConnectCRE.

The July contraction was compounded by sharp downward revisions to prior months. May payroll additions were revised down by 66,000 to 63,000, while June figures were trimmed by 37,000 to 20,000, leaving combined employment across May and June 103,000 lower than previously reported.

Even with the payroll decline, the unemployment rate edged down to 4.1% from 4.2% in June, beating a 4.2% consensus estimate, with the report attributing the change largely to a shrinking labor force.

ConnectCRE also noted that the softer labor data could reduce urgency for the Federal Reserve to raise interest rates, alongside expectations that inflation may cool later in the year as housing costs ease and the economic impact of President Trump’s tariffs fades.

More like this

Sources