US economy loses 23,000 jobs in July as labor market cools

The US economy unexpectedly lost 23,000 jobs in July, contradicting Dow Jones consensus forecasts of 83,000 new positions. The disappointing report signals cooling in the labor market. The unemployment rate fell slightly to 4.1%, while labor force participation dropped to 61.4%, a five-year low. May and June figures were revised downward, and major losses hit local government education, retail trade, and financial services. Healthcare, traditionally a leader in job creation, added just 22,000 positions. Average hourly earnings rose only two cents, slowing the 12-month wage growth to 3.2%, below the 3.5% forecast.