US employers cut 23,000 jobs in July; unemployment falls to 4.1%

US employers unexpectedly cut 23,000 jobs in July and prior hiring was revised lower, raising concerns about labor-market weakness and complicating the Federal Reserve's rate outlook. Nonfarm payrolls fell after a combined 103,000 downward revision to May and June. Unemployment dropped to 4.1% as labor-force participation slid to 61.4%, and annual wage growth slowed to 3.2%. Government, leisure, hospitality, and retail led declines. The data may prompt the Federal Reserve to delay rate increases, though July consumer-price data next week could prove decisive. Private payrolls rose 30,000, led by healthcare, while construction and manufacturing added jobs.