Surprise fall in US jobs last month as slow summer continues

Share Save Add as preferred on Google Michael Race Business reporter, New York Getty Images The US economy is creating fewer jobs than expected with the employment market performing weaker during the summer than previously thought, official figures show.

There was a surprise shedding of 23,000 jobs last month, with declines driven by cuts in local government education and retail roles, despite analysts predicting growth.

The Bureau of Labor Statistics also revised down the number of jobs added in May and June by 103,000, signalling a slow summer of job creation.

Analysts said the latest figures could reduce pressure on the US central bank, the Federal Reserve, to raise interest rates next month, despite high inflation.

Nancy Vanden Houten, lead economist at Oxford Economics, said expectations of interest rates being raised had been "scaled back", since the decision last month.