U.S. economy unexpectedly lost 23,000 jobs in July

A jobseeker speaks with a recruiter in front of signage during the Catalyst Career Group Dallas Job Fair in Dallas, Texas, US, on Wednesday, July 29, 2026. Dylan Hollingsworth | Bloomberg | Getty ImagesThe U.S. economy saw an unexpected declined in jobs during July while the unemployment rate edged lower, the Bureau of Labor Statistics reported Friday in a snapshot that showed a slowing employment picture.Nonfarm payrolls fell by a seasonally adjusted 23,000 for the month, compared to a downwardly revised 20,000 for June. The Dow Jones consensus forecast had been looking for a gain of 83,000.At the same time, the unemployment slipped to 4.1% as the labor force participation rate fell further to 61.4%, its lowest in more than five years.In addition to the weak numbers for June and July, the final count for May was revised down to 63,000, or 66,000 lower than the prior estimate. The revised numbers brought the 12-month average down to just 34,000.The drop was led by a 50,000 decline in local government education and a loss of 19,000 retail jobs. Financial activities also posted a 14,000 decline.Healthcare, which has been the leading sector for job creation, rose by 22,000, which was ...