U.S. employers shed 23K jobs in July with 264K more leaving the workforce

U.S. employers unexpectedly cut 23,000 jobs in July, and downward revisions erased 103,000 from May and June, raising doubts about a Federal Reserve rate hike next month. The unemployment rate dipped to 4.1% from 4.2%, but only because 264,000 people left the labor force, pushing participation to a 5½-year low of 61.4%. Economists had forecast 80,000 job gains. Job losses were concentrated in local government education, retail trade, and financial activities, while healthcare added 22,000. Markets now see a 43.9% chance of a September rate hike, down from 57%.