The unemployment rate remained low.
The U.S. labor market stalled last month as the economy unexpectedly lost jobs, new government data show.
Payrolls fell by 23,000 in July, from a downwardly revised 20,000 in the previous month, according to the Bureau of Labor Statistics.
This fell short of the average monthly gain of 34,000 over the last 12 months.
The consensus estimate prior to the July numbers was that 80,000 new jobs were added.
The unemployment rate edged lower, falling to 4.1 percent from 4.2 percent. This also came in below expectations.
Economists widely expect the jobless rate to remain at historically low levels since the breakeven rate—the number of new jobs needed to keep the unemployment rate low—is close to zero due to shifting immigration and labor force dynamics.
Last month’s losses were driven by local government education (negative 50,000), reflecting changes school districts are making to adapt to a changing environment, including shrinking enrollment and severe budget constraints.
Employment in retail trade fell by 19,000, while financial activities dropped by 14,000.
Job gains were centered in healthcare. The sector added 22,000 positions, although the reading was below the average monthly gain of 36,000 over the last year.
“The magnitude of the payroll miss suggests the labor market may be losing momentum and can no longer be considered the pillar of strength,” Charlie Ripley, senior investment strategist for Allianz Investment Management, told The Epoch Times in an emailed note.
The number of employed full-time workers declined by more than 100,000. Part-time employment levels increased by 138,000. The number of people working two or more jobs also accelerated to 8.693 million, from 8.554 million.
Downward revisions were front and center in the July jobs data.
May’s numbers were revised down by 66,000 to 63,000. June’s reading was adjusted lower by 37,000 to 20,000.
Earnings also came in below market forecasts. Average hourly earnings ticked up by 0.1 percent, down from 0.3 percent and below the estimate of 0.3 percent. On a 12-month basis, they eased to a lower-than-expected 3.2 percent, from a downwardly adjusted 3.4 percent in June.
The average work week was unchanged at 34.3. Excluding the pandemic years of 2020 and 2021, the labor force participation rate of 61.4 percent is the lowest since 1976.
By Andrew Moran
