economy
U.S. economy unexpectedly lost 23,000 jobs in July
Nonfarm payrolls were projected to increase by 83,000 in July while the unemployment rate would hold steady at 4.2%, according to the Dow Jones consensus.
TL;DR
- Nonfarm payrolls decreased by 23,000 in July, against an expected gain of 83,000.
- The unemployment rate fell to 4.1% due to a decrease in the labor force participation rate.
- Key sectors like local government education, retail, financial activities, and leisure/hospitality saw job losses.
- Healthcare and construction sectors reported job gains, but below their 12-month averages.
- Average hourly earnings saw minimal growth, impacting the 12-month average wage increase.
- The weak jobs report has shifted expectations for Federal Reserve interest rate hikes, with lower odds for a September increase.
- Stock market futures rose, and Treasury yields dropped following the report.