AI Generated Image
US economy shed 23,000 jobs, a sudden reversal
nbcnews.com • • general
Key Points:
- The U.S. economy lost 23,000 jobs in July, marking a setback after four months of job growth, with the unemployment rate slightly decreasing to 4.1%.
- Economists had expected 83,000 new jobs, but the Bureau of Labor Statistics also revised May and June job gains downward by a combined 103,000.
- Wage growth slowed to 0.1% from June and 3.2% year-over-year, falling below inflation at 3.5%, indicating declining real earnings for workers.
- Labor force participation hit its lowest since February 2021, suggesting more workers are leaving the workforce, while employment contracted notably in local government education, retail, and finance sectors.
- Despite the weak jobs report, stock futures rose and bond yields fell sharply, easing investor concerns about potential Federal Reserve interest rate hikes.
