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Jobs report July 2026:
CNBC • • general
Key Points:
- The U.S. economy lost 23,000 jobs in July, marking a surprising decline in nonfarm payrolls and signaling a slowing employment trend, with June and May numbers also revised downward.
- The unemployment rate slightly decreased to 4.1%, but this was driven by a drop in labor force participation to 61.4%, its lowest level in over five years, indicating fewer Americans are working or seeking work.
- Job losses were notable in local government education, retail, financial activities, and leisure and hospitality sectors, while healthcare and construction saw modest gains.
- Average hourly earnings rose by only 2 cents, resulting in a 12-month wage growth average of 3.2%, below forecasts and the lowest since May 2021.
- The weak jobs report influenced Federal Reserve rate hike expectations, reducing the odds of a September increase and boosting stock futures, as concerns grow over labor market risks alongside persistent inflation.
