The U.S. economy shed 23,000 jobs in July, far below expectations of an 83,000 gain, as revisions showed prior months were also weaker than first reported.
Key facts
- U.S. employers cut 23,000 jobs in July, according to the Labor Department.
- Economists had projected an increase of 83,000 jobs, per the Dow Jones consensus.
- Job gains for the two previous months were revised lower.
- The unemployment rate had been expected to hold steady at 4.2%.
The U.S. economy unexpectedly lost 23,000 jobs in July, according to a report Friday from the Labor Department, in a sharp reversal from what economists had anticipated.
Nonfarm payrolls had been projected to increase by 83,000 in July, according to the Dow Jones consensus reported by CNBC. Instead, employers cut positions, marking a notable miss against forecasts.
NPR reported that the decline was accompanied by downward revisions to the two previous months, with job gains during that period weaker than initially reported. Taken together, the figures point to what NPR described as a wilting labor market.
The unemployment rate had been expected to hold steady at 4.2%, according to the Dow Jones consensus cited by CNBC.
The combination of outright job losses and weaker prior-month figures suggests the labor market may be cooling more than earlier data indicated, a development closely watched by policymakers at the Federal Reserve.
Why it matters
The labor market is a key gauge of the economy's health, and an unexpected drop in jobs can signal slowing growth. The report also feeds directly into Federal Reserve decisions on interest rates, which affect borrowing costs for households and businesses.
Frequently asked questions
How many jobs did the U.S. economy lose in July?
U.S. employers cut 23,000 jobs in July, according to a Labor Department report cited by CNBC and NPR.
What were economists expecting?
Economists had projected nonfarm payrolls to increase by 83,000 in July, according to the Dow Jones consensus reported by CNBC.
Were previous months also affected?
Yes. NPR reported that job gains for the two previous months were weaker than initially reported after downward revisions.