Key facts
- US non-farm payroll employment declined by 23,000 in July.
- Previous months' job gains were revised downward by a combined 103,000.
- The unemployment rate remained at 4.1% in July.
- Average hourly earnings increased 3.2% year-over-year in July.
- The labor force participation rate held at 61.4%.
The U.S. labor market lost momentum in July, with employers cutting 23,000 jobs and previous months' gains revised significantly lower. The unemployment rate held steady at 4.1%, while the labor force participation rate remained at 61.4%. Average hourly earnings increased by 3.2% year-over-year.
Job losses were concentrated in local government education and retail trade, while health care continued to add jobs. Financial activities also saw a decline. The number of workers on temporary layoff increased, but long-term unemployment edged lower.
Economists suggest the cooling employment picture could influence the Federal Reserve's policy decisions, potentially leading to a pause in interest rate hikes. This could offer some relief for the housing market by keeping mortgage rates in check.