The economy has been weaker than we thought as jobs report reveals 23,000 deficit in July

Employers cut 23,000 jobs in July, reversing expectations for job growth near 100,000, according to the June jobs report released by the U.S. Labor Department. Revisions also shaved 103,000 jobs from May and June payrolls. The unemployment rate fell to 4.1%—its lowest since June 2025—but the drop reflected fewer people competing for work, with 264,000 leaving the labor market. The labor-force participation share fell to 61.4%, the lowest since February 2021. Schools cut 50,000 jobs, while restaurants and bars shed 26,000. The administration pointed to gains in construction and factories, even as broader hiring momentum cooled.