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Home – Political News – US Nonfarm Payrolls Unexpectedly Decline in July; Unemployment Rate Eases to 4.1%

US Nonfarm Payrolls Unexpectedly Decline in July; Unemployment Rate Eases to 4.1%

The U.S. economy unexpectedly shed jobs in July and nonfarm payrolls for the prior two months were revised sharply lower, raising questions about whether the Federal Reserve will increase interest rates next month.

While the Labor Department’s closely watched employment report on Friday showed the unemployment rate falling to 4.1% last month from 4.2% in June, that was because another 264,000 people left the labor force, pushing the participation rate to a near 5 1/2-year low of 61.4%. 

Job growth has a tendency to slow during summer, but last month’s decline in payrolls and sharp downward revisions to May and June data could challenge the narrative of a “slow hire, slow fire” labor market.

“The labor market appears to have slammed the brakes on new hiring,” said Christopher Rupkey, chief U.S. economist at FWDBONDS. “It isn’t lights out yet for the economic outlook, but the future is dim if pessimism leads to more dropouts and companies cannot get the help they........

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