U.S. employers shed 23,000 jobs in July, unemployment falls to 4.1%

U.S. employers cut 23,000 jobs in July, unexpectedly losing payrolls amid Iran war strain, while unemployment fell to 4.1% as workers left the labor market. Revised data removed 103,000 more jobs from May and June. Schools cut 50,000 jobs, restaurants and bars 26,000, retailers 19,000. Forecasters had expected nearly 100,000 added jobs. The labor-force participation rate hit 61.4%, lowest since February 2021, with 264,000 people dropping out. Hiring averages 61,000 monthly this year, up from 9,700 in 2025.