Overview
- The Bureau of Labor Statistics reported that payrolls declined by about 23,000 in July, a surprise that followed earlier signs of slower hiring and was published on Friday.
- May and June payrolls were revised down by a combined roughly 103,000 jobs, changing the recent picture from modest growth to clear weakening.
- The unemployment rate fell to 4.1% while the labor force participation rate slipped to about 61.4%, meaning the jobless rate fell partly because fewer people were counted as looking for work.
- Job losses were concentrated in local government and education, retail and leisure, while health care, construction and parts of manufacturing continued to add jobs and average hourly earnings slowed to a 3.2% year‑over‑year pace.
- Financial markets moved quickly to price out a September Fed hike and investors will watch next week's Consumer Price Index for signs that inflation could force the Fed to change course, a shift that would affect mortgage rates and household budgets.