WASHINGTON: The US economy unexpectedly lost 23,000 jobs in July, government data showed, signalling potential weakness in the labour market after months of steady growth.
The unemployment rate in the world's largest economy ticked down to 4.1 per cent, according to data published Friday by the US Bureau of Labour Statistics.
Employment declined in the local government education and retail trade sectors, while it continued to grow in health care, the BLS said in a statement.
The BLS also revised down job growth in the previous two months by 103,000, showing the labour market to be less robust than previously reported.
Based on the new figures, job growth hit a peak in March before declining in the next three months and hitting negative territory in June.
The unemployment rate has remained relatively steady through choppiness in the labour market, as labour supply has been declining due to an aging population and lower net migration.
The new figures could raise the alarm for the US Federal Reserve, which has viewed the labour market as largely stable, with policymakers saying they are focused on the inflation side of their mandate.
July's data showed the local government education sector lost 50,000 jobs, after showing little change over the previous year.
Retail trade lost 19,000 jobs, with employment declining in warehouse retailers — firms like Costco, Sam's Club and others that offer discounts for wholesale quantities of household goods — and general merchandise stores.
Employment in the financial activities sector continued its downward trend, losing 14,000 jobs. Employment in the sector is down 121,000 from its May 2025 peak.
The health care sector has buoyed the US labour market over the last year, with more Americans aging and requiring medical assistance.
In July, the sector added 22,000 jobs, but it was a slower pace than its average gain over the last year.
Average hourly earnings increased by 3.2 per cent over last year, lagging inflation and therefore leaving workers with less income in real terms.
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