US likely added nearly 100,000 jobs in July, but market is still tough for young and unemployed - AP News
The U.S. job market experienced an unexpected downturn in July, with payrolls shrinking by 23,000 jobs and significant downward revisions to previous months. While the unemployment rate fell to 4.1%, this was primarily driven by a large number of workers exiting the labor force.
Why it matters
The weak jobs report complicates the Federal Reserve's economic strategy and creates political pressure for the Trump administration ahead of midterm elections.
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WASHINGTON (AP) — The U.S. job market stalled unexpectedly last month, delivering a political blow to President Donald Trump three months ahead of midterm elections and complicating decision-making for the inflation fighters at the Federal Reserve.
Employers cut 23,000 jobs in July. And Labor Department revisions slashed 103,000 jobs from May and June payrolls.
The unemployment rate fell but for the wrong reason: Thousands of people dropped out of the labor market so fewer people were competing for work.
The July jobs numbers from the Labor Department Friday marked a sharp setback for the American labor market and for 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.
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