US employers cut 23,000 jobs, unemployment dips to 4.1% as workers exit labor force

U.S. employers unexpectedly cut 23,000 jobs in July, with revisions shaving 103,000 from previous months; unemployment fell to 4.1% as workers left the market. Forecasters had expected about 100,000 jobs; school, restaurant, and retail payrolls fell sharply. The labor force participation rate dropped to 61.4%, lowest since February 2021, and the White House called it a political setback before midterms. Tariffs aimed at manufacturing accompanied gains in construction (22,000) and factory jobs (5,000). Economists call the market “no hire, no fire,” with low layoffs but weak hiring linked to labor shortages, productivity, and retirements.