U.S. employers unexpectedly cut 23,000 jobs in July, marking the second straight miss against forecasts and signaling a weakening labor market. The unemployment rate fell to 4.1%, but that figure was artificially lowered by more than 260,000 workers leaving the workforce entirely. Worker confidence hit a record low as wage gains of just 3.2% fail to outpace inflation, particularly rising energy costs. The softening job market may force the Federal Reserve to proceed cautiously on interest rates even as it grapples with persistent inflation.
Original Article Source Link:
https://www.npr.org/2026/08/07/nx-s1-5924786/employers-economy-labor-jobs-federal-reserve