23,000 U.S. jobs were lost in July as labor report also shows dip in unemployment

Unemployment went down to 4.1%, but for the wrong reasons.

A job seeker waits to talk to a recruiter at a job fair Aug. 28, 2025, in Sunrise, Fla. [Photo: Marta Lavandier/AP Photo]

U.S. employers unexpectedly cut 23,000 jobs last month, and Labor Department revisions shaved 103,000 jobs off payrolls in May and June. The unemployment rate dipped to 4.1% only because Americans left the job market.The July jobs numbers from the Labor Department on Friday marked a sharp reversal for the American labor market and a setback for President Donald Trump less than three months before his Republican party seeks to keep full control of Congress in the midterm election.Forecasters had expected job creation to approach 100,000 last month.Local public schools cut 50,000 jobs in July, restaurants and bars 26,000, and retailers 19,000.The 4.1% unemployment rate was the lowest since June 2025—but it dropped for the wrong reasons: Fewer people were competing for work, as 264,000 dropped out of the labor market. The share of those working or looking for work fell to 61.4%, the lowest since February 2021.Hiring had........

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