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US jobs fell by 23,000 in July as summer hiring slows
The Bureau of Labor Statistics also revised May and June payroll gains down by 103,000, while the unemployment rate dipped to 4.1% from 4.2%.
U.S. hiring fell short of expectations in July, with the economy shedding 23,000 jobs, according to official figures reported by BBC Business.
The declines were attributed to cuts in local government education and retail roles, including positions in wholesale stores, hypermarkets, gas stations, and general merchandise outlets. The Bureau of Labor Statistics also revised down the number of jobs added in May and June by 103,000, reinforcing the picture of a weaker summer for job creation.
Even with fewer jobs, the unemployment rate edged down to 4.1% from 4.2%, as the number of people in work or looking for work declined slightly. BBC Business also noted that payrolls can be softer in July, but investment commentary suggested the jobs market was weaker by a notable margin.
The report raised fresh questions about the Federal Reserve’s next interest-rate decision after the central bank left rates unchanged this year, between 3.5% and 3.75% last month. Inflation remained elevated, with consumer prices running at an annual rate of 3.5%, while average hourly earnings rose 3.2% year over year to July, below the 3.5% economists expected.