U.S. economy lost 23,000 jobs in July; blockysts expected gains

Aug. 7 (UPI) — U.S. employers unexpectedly cut jobs in July even as the unemployment rate ticked lower, according to data released Friday by the Bureau of Labor Statistics.

Nonfarm payrolls fell by 23,000 on a seasonally adjusted basis, down from June’s downwardly revised 20,000 reading.

Analysts polled by Econoday had expected the economy to add 88,000 jobs.

The unemployment rate was 4.1% in July, down from 4.2%. The consensus on Econoday was for 4.2%. The labor force participation rate slipped to 61.4% from 61.5% the month before.

Meanwhile, May’s job count was revised lower, from 63,000 from 66,000 previously.

The BLS said July’s fall was led by a 50,000 slide in local government and education, while retail lost 19,000 positions. The financial industry shed 14,000 jobs.

However, healthcare added 22,000 posts.

The data showed that employees hourly earnings rose 2 cents. The average workweek remained at 34.3 hours.

Friday’s BLS data came two days after data from payrolls processor ADP showed that nonfarm job growth in July slowed to 44,000 from a downwardly revised 95,000 the month before. The Street had expected a gain of 75,000 jobs last month.

According to ADP, most private-sector hiring happened in the service industries, where 47,000 jobs were added. Education and health services accounted for 36,000 of those jobs.