NewsPulse
← All stories
Economy2 days ago· 1 min read

US Employers Unexpectedly Cut 23,000 Jobs in July; Revisions Worsen Picture

By ·

The U.S. labor market weakened significantly in July as employers shed 23,000 jobs, surprising economists who expected gains of over 80,000. The Labor Department also downwardly revised prior months, raising concerns about economic momentum heading into fall.

Shocking Job Losses Surprise Economists

The Labor Department said Friday that employers unexpectedly lost 23,000 jobs in July, and the department revised the numbers down from May and June by a total of 100,000 jobs. The consensus prediction from experts canvassed by Dow Jones had been that more than 80,000 jobs would be created.

Political and Economic Fallout

Democrats pounced on the number to reinforce their case that President Trump is mismanaging the economy. Former Transportation Secretary Pete Buttigieg, a possible 2028 presidential candidate, wrote on social media platform X: "The economic failures of the Trump administration keep piling up. There's no way to spin these dismal results, because Americans know they're paying the price every day."

Broader Economic Context

The economy grew at a 1.5% rate last quarter, inflation is only at 3.5% — not the 9+% it was at in 2022. The jobs report on Friday came in less than good. The thinking now: Soft job market AND elevated inflation. Many people feel that their job or their position in the labor market is precarious. In a labor market where it's hard to find a new job, the cost of losing your job is much higher.

Sector Breakdown

The U.S. labor market softened in July as employers cut 23,000 jobs. Construction companies and factories continued to add workers, but retailers and restaurants shed jobs.

#Employment#Labor Market#Inflation#Economic Growth

Sources

Related coverage

Economy← Earlier

U.S. Job Market Stumbles: Employers Unexpectedly Cut 23,000 Jobs in July Amid Geopolitical Strain

5 days ago
Economy

U.S. Employers Shed 23,000 Jobs in July, Unemployment Falls to 4.1%

The U.S. economy unexpectedly lost 23,000 jobs in July, marking a significant labor market contraction despite unemployment falling to 4.1%. The job losses far exceeded economist forecasts of 80,000 gains and reflect strain from the ongoing Iran war and elevated energy costs.

5 days ago
Economy

U.S. Economy Unexpectedly Lost 23,000 Jobs in July, Shocking Markets and Fed

The U.S. shed 23,000 jobs in July despite forecasts of 80,000 gains—the first monthly decline in years—but stocks rallied on expectations of lower interest rates ahead.

4 days ago
Economy

July jobs report shows U.S. labor market cooling, losing 23,000 positions

Friday's employment report showed the U.S. economy lost 23,000 jobs in July instead of the forecasted gain of 95,000 positions, signaling a cooling labor market after months of relative strength. The unexpected contraction could influence Federal Reserve decisions on interest rate policy as economic growth indicators weaken.

4 days ago
Economy

Consumer Spending Surges 3.2% Despite Economic Uncertainty, Supported by Tax Refunds and Inflation

U.S. consumer spending accelerated at a 3.2% rate, buoyed by larger tax refunds and elevated gas prices, providing a bright spot in an otherwise mixed economic picture marked by weak job growth and persistent inflation.

2 days ago
Economy

U.S. Economy Unexpectedly Sheds 23,000 Jobs in July Amid Inflation Uncertainty

The U.S. labor market weakened significantly in July 2026, with employers cutting 23,000 jobs when growth was expected, and unemployment ticking down only because workers left the job market. Revised data also showed 103,000 fewer jobs created in May and June than originally reported, raising concerns about persistent inflation.

2 days ago