U.S. Employers Shed 23,000 Jobs as Labor Market Weakens
U.S. employers shed 23,000 jobs in July, the Bureau of Labor Statistics said Aug. 7, a figure far below analysts’ expectations. Downward revisions to job growth in May and June also point to a weaker labor market than previously estimated.
Hiring Slowed as Unemployment Shifted
The July job losses came after hiring slowed in June, following an earlier rebound from historically weak job creation in 2025. The latest estimate is below the department’s revised gains of 20,000 jobs in June and 63,000 in May.
The unemployment rate ticked down to 4.1% in July. After holding steady at 4.3% for three months, it dropped to 4.2% in June. Some experts attributed that dip to fewer people looking for work, rather than a significant rise in the number of people getting hired.
Paychecks Lagged Behind Inflation
Average hourly earnings for employees on private, nonfarm payrolls rose by 2 cents to $37.62 in July, the BLS said. Over the last 12 months, earnings increased 3.2%, falling short of the 3.5% year-over-year increase in consumer prices recorded in June.
The BLS Consumer Price Index report due Aug. 12 will show whether workers’ wage increases kept up with inflation in July.
This is a developing story and will be updated to add new information.
Reporting by Rachel Barber, USA TODAY. USA TODAY Network via Reuters Connect.
