U.S. employers reported losing 23,000 jobs in July, a blow to employment forecasts, as the unemployment rate dipped to 4.1%, according to the latest report from the U.S. Bureau of Labor Statistics. Employment fell across industries, while trending up in health care.
The labor market, long stuck in a “low-hire, low-fire” slog, was appearing to show signs of life. Across a wide range of data sources, both public and private, the labor market had improved — even if just a little — this year compared with last year. And in separate surveys, employers are expressing optimism about hiring outlooks for the remainder of 2026.
Jobless claims, a closely watched proxy for layoffs, have remained exceptionally low. First-time filings for unemployment insurance are hovering near the lowest they’ve been in decades. And planned layoffs are at a two-year low. But economic headwinds remain, including stubborn inflation, high borrowing costs, and broader trade and geopolitical uncertainties.
Check back here later today for more analysis from labor market economists and other experts.
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