The U.S. labor market shed 23,000 jobs in July, and jobs gains for May and June were also revised down by a combined 103,000 jobs, according to a new report by the Labor Department.
Economists had forecast a pickup of around 80,000 new jobs.
Breaking News: U.S. employers unexpectedly cut 23,000 jobs in July, and hiring in previous months was revised down sharply. https://t.co/IaI3ex6Ict
— The New York Times (@nytimes) August 7, 2026
From the New York Times (gift link):
Employers cut 23,000 positions last month, the Labor Department reported on Friday, and the unemployment rate dropped slightly to 4.1 percent as hundreds of thousands of people left the labor force.
The lower-than-expected reading comes after what had appeared to be a surge in job creation earlier in the year, born out of optimism around tax cuts, a respite from new tariffs, easing interest rates and lower inflation.
But those numbers were also revised down by 103,000 jobs total.
Since then, costs have jumped as oil shipments from the Persian Gulf have remained stalled, while the Trump administration has renewed its battle against imports. At the same time, workers are getting harder to find, as the pace of immigration has slowed substantially.
White House economic advisor Kevin Hassett tried to put the blame for job losses on the World Cup, despite the Trump administration’s countless claims that the World Cup would be a boon to hiring.
Hassett on why the economy lost 50,000 government jobs: “It was one of those weird seasonal things. Because there was a lot of snow in the winter, a lot of schools had to stay open longer for the snow days, so the teachers got laid off in July instead of the end of June.… pic.twitter.com/ci1nW1pkuh
— Aaron Rupar (@atrupar) August 7, 2026
If you exclude the blown saves, the Washington Nationals are leading the National League East. https://t.co/wyOCEM5scK
— Norman Ornstein (@NormOrnstein) August 7, 2026
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