Surprise fall in US jobs last month as slow summer continues

What the report says

The US labor market weakened more than economists expected last month, according to figures reported by Nile Post from the Bureau of Labor Statistics. The report showed a net loss of 23,000 jobs, with declines centered in local government education and retail-related work. Analysts had been looking for job growth, so the result pointed to a softer summer than many had anticipated.

The same report also revised job gains in May and June downward by a combined 103,000, adding to evidence that hiring slowed over the season. Even so, the unemployment rate edged down to 4.1% from 4.2%, in part because fewer people were working or actively looking for work. Wage growth also came in below some expectations, with average hourly earnings rising at a moderate pace compared with forecasts.

The figures matter because they may influence the US Federal Reserve’s next interest-rate decision. A weaker jobs picture can reduce pressure for additional tightening, but it also raises concern about overall economic momentum. More broadly, the data adds to a mixed picture in which inflation remains elevated while job creation has lost pace. General background: in the US, monthly employment reports are closely watched by markets and policymakers as a signal of growth and labor demand.