News
07/08/26
US sheds 23,000 jobs in July, revisions lower
Houston, 7 August (Argus) — The US unexpectedly shed jobs in July and revisions
halved gains in the prior two months, suggesting the labor market is weakening
in the face of uncertainty spawned by rising energy costs linked to the Mideast
Gulf war. The US unexpectedly lost 23,000 non-farm jobs in July, the Labor
Department reported. That compared with a median average of about 80,000 job
gains expected by economists surveyed by Trading Economics. Job gains in June
were revised down to 20,000 from an initially reported 57,000, with May revised
lower to 63,000 from an initially reported 129,000, for combined downward
revisions of 103,000. "Looking ahead, we expect businesses to remain cautious
about hiring in response to higher energy prices and uncertainty about how AI
will affect staffing needs," Pantheon Macroeconomics said in a note. Total
nonfarm employment averaged growth of 34,000/month for the 12 months prior to
July. Average hourly earnings increased by 3.2pc in the 12 months to July,
slowing from 3.4pc in June. The unemployment rate ticked lower to 4.1pc in July,
the lowest since June last year, from 4.2pc the prior month. Retail trade lost
19,000 jobs in July, including 5,000 losses at gasoline stations and fuel
dealers. Financial activities lost 14,000 jobs, and is down by 121,000 since a
recent peak in May 2025. Health care added 22,000 jobs. Government jobs lost
53,000, partly reflecting lost teaching jobs as the school year ended. Following
the report, odds of a quarter point Fed rate increase at the September meeting
fell to 44pc in the CME's FedWatch tool from 55pc the prior day. The Fed has
signaled it might hike rates to bring down inflation but signs of mounting labor
market weakness could prompt it to hold longer. The report "is another nudge for
the Fed to keep policy on hold for an extended period as inflation stemming from
higher oil prices, tariffs and the AI buildout fades," Oxford Economics said in
a note. Manufacturing added 5,000 jobs while construction added 22,000 jobs.
Mining and logging shed 2,000 jobs. Transportation and warehousing added 9,700.
Leisure and hospitality lost 40,000. The labor force participation rate, which
tracks those employed and those actively seeking work, ticked lower to 61.4pc,
the lowest since the Covid pandemic. The lower rate reflects rising retirements
and discouraged workers. By Bob Willis Send comments and request more
information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All
rights reserved.
