US Employers Cut 23000 Jobs in July
US employers cut 23000 jobs in July. This was unexpected according to a Labor Department report released Friday.
It was the first monthly job decline since February. The unemployment rate fell to 4.1%.
Also 264000 people left the labor force. Job gains for May and June were weaker than first reported.
Those numbers were lowered by a combined 103000. The Labor Department shared this alongside the July job cuts.
The weak jobs report changed trader expectations. Traders now expect fewer interest rate increases from the Federal Reserve. This suggests the US job market is slowing down.
Klear Note — The unemployment rate measures job seekers who cannot find work. The labor force includes workers and people actively seeking jobs. The Federal Reserve uses interest rates to influence borrowing, spending, and hiring.
Key Terms 3
- Federal Reserve The US central bank that controls interest rates.
- unemployment rate The percentage of people without jobs who want one.
- labor force People who are working or looking for work.