US labor market loses 23,000 jobs in July as unemployment rate dips slightly

Washington, Aug 7 (KUNA) -- Data released by the U.S. Department of Labor on Friday showed that the U.S. economy experienced an unexpected decline in jobs during July, losing 23,000 positions, while the unemployment rate fell to 4.1 percent, down from 4.2 percent in June, reflecting a slowdown in the labor market.

The Bureau of Labor Statistics, in its monthly report, stated that nonfarm payrolls “decreased by 23,000 jobs (after seasonal adjustment) in July, compared to a downwardly revised 20,000 jobs in June,” a figure that fell short of Dow Jones estimates, which had projected an increase of 83,000 jobs.

At the same time, the unemployment rate dropped to 4.1 percent, while the labor force participation rate fell to 61.4 percent, its lowest level in more than five years, serving as another indicator of the shrinking number of Americans who are employed or seeking work.

The report comes at a time when policymakers at the Federal Reserve (the U.S. central bank) are divided over the future path of interest rates. The economy has seen improvement in the labor market following a recession in 2025, while inflation remains significantly above the central bank’s 2 percent target. (End) R.R. / A.M.S.