US economy unexpectedly sheds 23,000 jobs in July; unemployment rate eases to 4.1%

The US economy unexpectedly shed 23,000 jobs in July, with the nonfarm payrolls for the prior month revised sharply lower, potentially raising questions about the Federal Reserve's interest rate decision in September. The unemployment rate fell to 4.1% in July, but this was due to a large number of people leaving the labor force, leading to a near 5½-year low participation rate of 61.4%.

While the economy added 103,000 fewer jobs in May and June than previously estimated, the retail trade sector lost 19,000 jobs, with the majority at warehouse clubs and supercenters. Financial activities saw a loss of 14,000 jobs, bringing the total decline in this sector since May 2025 to 121,000.

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