US Labor Market Sheds 23,000 Jobs in July

The US economy lost 23,000 jobs in July 2026, with the government sector shedding 53,000 positions and leisure and hospitality cutting 40,000 jobs.

The unemployment rate fell to 4.1 percent from 4.2 percent, a shift driven by a decline in labor force participation to 61.4 percent, the lowest level in five years.

Market expectations for Federal Reserve interest rate cuts have shifted, with the CME FedWatch tool now forecasting a 56 percent chance that rates will remain unchanged in September.