U.S. employers cut 23,000 jobs in July, and payrolls for May and June were revised lower.
Why it matters: The report points to a cooling labor market, a key signal for Federal Reserve policy. It also lands as mortgage costs keep rising, adding pressure on housing demand.
- The Labor Department said payrolls fell 23,000 in July.
- May and June payrolls were revised down by a combined 103,000 jobs.
- The unemployment rate fell to 4.1% as 264,000 people left the labor force.
- Freddie Mac said the average 30-year fixed mortgage rate rose to 6.69% for the week ended Aug. 7.
The Labor Department said employers cut 23,000 jobs in July, a weaker result than economists expected and a sharp break from recent hiring trends. The report also showed that May and June payrolls were revised down by a combined 103,000 jobs.
The unemployment rate fell to 4.1%, but the decline reflected fewer people in the labor force. Labor-force participation slipped to 61.4%, its lowest since February 2021.
Job losses were concentrated in a few areas, including local public schools, restaurants and bars, and retailers. The details are likely to keep attention on the Federal Reserve as it weighs signs of a cooling job market.
Housing conditions are still tight. Freddie Mac said the average 30-year fixed mortgage rate rose to 6.69% for the week ended Aug. 7, up from 6.66% a week earlier and above 6.63% a year earlier. Freddie Mac's mortgage-rate archive shows the fifth straight weekly increase.
Reuters reported that stocks rose and Treasury yields fell after the jobs data, as investors increased bets on easier policy later this year.
By the numbers
- 23,000 - U.S. payrolls lost in July
- 103,000 - combined downward revisions to May and June payrolls
- 6.69% - average 30-year fixed mortgage rate for the week ended Aug. 7
Yes, but: The unemployment rate fell, so the report does not show a clean deterioration across all labor-market measures.