The U.S. economy lost 23,000 in July, while the unemployment rate fell slightly to 4.1%.
The figures showed declines in local government education and retail trade, according to the figures from the Bureau of Labor Statistics.
The job loss was unexpected, with analysts estimating a gain of as much as 100,000.
Jobs in movies and music actually grew during the month, by 9,900, to 332,700, reversing some previous declines. Jobs in broadcasting and among content providers fell by 1,500 to 335,800.
As is typically the case, the bureau revised figures for previous months, but shed 103,000 jobs from May and June estimates. Economists had cited more robust job gains earlier in the year as evidence of the resiliency of the U.S. economy, even in the face of tariffs and the war in Iran. The bigger concern has been inflation, and whether the Federal Reserve would be forced to raise rates this fall.
There were job gains in other categories, including health care, but the bureau said that the 22,000 positions added were at a slower pace than in previous months.
Watch on Deadline
Average hourly earnings changed little, by two cents, to $37.62. Average hourly earnings have increased by 3.2% over the past year.
Heather Long, chief economist for Navy Federal, called the job report “bleak.”
She wrote on X, “The Fed’s job just got a lot harder. The labor market is stalling again. Many industries shedding jobs or flat.”
Mark Zandi, chief economist at Moody’s Analytics, wrote, “There’s no sugar coating the overarching message in the July jobs report – the economy is struggling.”
He added, “Job growth is at a virtual standstill, and concentrated in a few sectors. While unemployment is low, that’s only because those losing their jobs are leaving the workforce, too discouraged to look for a job, as few businesses are hiring. Hours worked are low and are slumping lower. Wage growth continues to decelerate and is below the rate of inflation, a clear tell that the job market is operating below full-employment despite the low unemployment rate.”
